Source - RNS
RNS Number : 2276L
Herencia Resources PLC
29 September 2016
 

 

Herencia Resources plc

 

("Herencia" or the "Company")

 

HALF-YEARLY FINANCIAL REPORT

For the six months ended 30 June 2016

 

 

Herencia Resources plc is pleased to announce the unaudited half-yearly accounts of the Company and its subsidiaries (the "Group") for the six months ended 30 June 2016.

 

CHAIRMAN'S STATEMENT

 

I am pleased to advise that following the period under review, on 28 July 2016, the Company announced the execution of a formal purchase agreement with Golden Rim Resources Limited ("GMR") for the sale of its 70% ownership in the Paguanta zinc, silver and lead Project in northern Chile. The total consideration was US$1.5 million in cash and US$880k in GMR equity, and GMR agreeing to pay up to US$2.1 million (approximately £1.5 million) towards various contingent liabilities. As announced on 16 September 2016, the Company has used these funds to repay the majority of its creditors which places substantial constraints on the Company's current working capital position, however the Company is in funding discussions with interested parties and remains open to explore other funding options.

 

Other activities during the period include:

 

·     The approval by shareholders at the Annual General Meeting held on 29 June 2016 to subdivide each Ordinary Share into 1 ordinary share of 0.01p and a deferred share of 0.09p.This will allow the issue of shares as a source of funding which has otherwise been unavailable since the last equity raise in September 2015;

 

·     Securing funding arrangements by way of Secured Convertible Facilities totalling US$750,000 with two of our major shareholders, the Australian Special Opportunity Fund ("Lind Partners") and Oriental Darius Co. Ltd ("Oriental").  The shareholders have been very supportive and a total of US$350,000 has been drawn down under this facility to date with a further US$400,000 that can be advanced at the discretion of the Shareholders;

 

·     Undergoing a process of restructure including the Board to re-establish Herencia as a viable junior exploration and development company; and

 

·     Continue to actively pursue opportunities for the Picachos Project.

 

Finally, I would like thank my fellow directors and our small and dedicated team in Chile for their efforts in securing the successful sale of the Paguanta Project and also to our shareholders for their continued support.

 

 

Hon. John Moore AO

Chairman

29 September 2016

 

 

Please refer to the project announcements at the Company's website (www.herenciaresources.com) for further information on the Company operations.

 

For further information please contact:

Graeme Sloan, Herencia Resources plc                                                                  +61   8 9481 4204 

Katy Mitchell/Nick Prowting WH Ireland Limited (NOMAD)                             +44   161 832 2174

Jon Belliss, Beaufort Securities Limited (UK)                                                       +44   207 382 8300

 

CONSOLIDATED STATEMENTS OF COMPRHENSIVE INCOME

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 






 



6 months ended

30 June

6 months ended

30 June

12 months ended

31 December



2016

2015

2015


Notes

(unaudited)

(unaudited)

(audited)



£

£

£

Revenue


-

-

-

Cost of sales

 


-

-

-

Gross profit

 


-

-

-

Administration expenses


(424,907)

(1,052,305)

(2,173,197)

Impairment of exploration & evaluation assets



-


-


(10,908,123)

Foreign exchange gains/(losses)

 


2,924,686

(487,302)

(896,004)




Operating profit/(loss)

 


2,499,779

(1,539,607)

(13,977,324)

Finance revenue

 


4

173

227

Income/(loss) before tax

 


2,499,783

(1,539,434)

(13,977,097)

Income tax expenses

 


-

-

-

Income/(loss) for the period

 


2,499,783

(1,539,434)

(13,977,097)

Other comprehensive income/(loss)





Exchange differences on translating foreign operations


 

(2,347,698)

 

117,341

 

81,414






Other comprehensive income/(loss), net of tax


 

(2,347,698)

 

117,341

 

(81,414)

 

Total comprehensive income/(loss) for the period, net of tax


 


152,085

 


(1,422,093)

 


(13,895,683)

 

Income/(loss) attributable to:





Equity holders of the Company


2,478,140

(1,465,600)

(13,741,247)

Non-controlling interests


21,643

(73,834)

(235,850)



 

2,499,783

 

(1,539,434)

 

(13,977,097)






Total comprehensive income/(loss) attributable to:





Equity holders of the Company


128,291

(1,333,104)

(13,616,067)

Non-controlling interests


23,794

(88,989)

(279,616)



 

152,085

 

(1,422,093)

 

(13,895,683)

Income/(loss) per share

Income/(loss) per ordinary share - basic and diluted



2



0.06p



 (0.04)p



 (0.36)p

The results shown above relate entirely to continuing operations.

 

 

STATEMENTS OF FINANCIAL POSITION

AT 30 JUNE 2016

 





 



30 June

30 June

31 December



2016

2015

2015


Notes

(unaudited)

(unaudited)

(audited)



£

£

£

ASSETS










Non current assets





Receivables


66,523

257,871

432,202

Intangible assets and goodwill

4

4,796,012

16,184,652

4,719,602

Property, plant and equipment

5

30,108

65,972

41,437



4,892,643

16,508,495

5,193,241

Current assets





Cash and cash equivalents


55,236

141,877

207,183

Trade and other receivables


83,219

273,622

253,272

Other assets


17,334

16,664

41,736

Assets held for resale

6

1,167,260

-

-



1,323,049

432,163

502,191

Total assets


6,215,692

16,940,658

5,695,432






LIABILITIES

 

Non current liabilities





Provisions

7

-

48,739

46,566

Loans and borrowings

8

147,278

-

-



147,278

48,739

46,566

Current liabilities





Trade and other payables


855,119

641,697

1,290,721

Provisions

7

83,643

32,182

72,738

Loans and borrowings

8

499,623

150,000

250,000

Liabilities held for resale

6

390,646

-

-



1,829,031

823,879

1,613,459

Total liabilities


1,976,309

872,618

1,660,025






Net Assets


4,239,383

16,068,040

4,035,407

 

EQUITY

 





Share capital

10

4,266,609

3,634,982

4,266,609

Share premium

10

23,412,246

23,298,661

23,412,246

Share based payments reserve


761,360

761,360

761,360

Translation reserve


(3,843,319)

(1,486,154)

(1,493,470)

Shares to be issued


-

299,698

-

Other reserve

8

33,606

112,048

-

Retained losses


(23,903,277)

(14,217,818)

(26,381,417)

Capital and reserves attributable to equity holders



727,225


12,402,777


565,328






Minority interests in equity

9

3,512,158

3,665,263

3,470,079

 

Total equity and reserves


 

4,239,383

 

16,068,040


4,035,407

                                                                      

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2016

 








6 months ended

30 June

6 months ended

30 June

12 months ended

31 December


Notes

2016

2015

2015



(unaudited)

(unaudited)

(audited)



£

£

£

 

Net cash outflow from operating

activities


(477,681)

(732,550)

(1,089,785)






Cash flows from investing activities





Interest received


4

173

227

Part proceeds from sale of Paguanta

6

158,577

-

-

Payments for property, plant and equipment

5

-

-

(3,197)

Net funds used for investing in exploration

4

(348,002)

(325,262)

(445,722)

 

Net cash used by investing activities


 

(189,421)

 

(325,089)

 

(448,692)






Cash flows from financing activities





Proceeds from issue of shares


-

-

512,000

Proceeds from director loans

8

270,735

150,000

250,000

Proceeds from convertible loans

8

244,420

-

-

Issue Costs


-

-

(65,856)


Net cash generated from financing activities


 

515,155

 

150,000

 

696,144






Net decrease in cash and cash
equivalents



(151,947)


(907,639)


(842,233)

 

Cash and cash equivalents at the beginning of the period


 


207,183

 


1,049,516

 


1,049,516






Cash and cash equivalents at the end of the period

 

 

 

55,236

 

141, 877

 

207,183







CONSOLIDATED STATEMENTS OF CHANGES in EQUITY

FOR THE SIX MONTHS ENDED 30 June 2016

 


 

 

Share

capital

£

 

 

Share

premium
£

 

 

Translation reserve

£

 

Share-based

 payments reserve

£

 

 

Other

reserves

£

 

Shares

to be  issued

£

 

 

Retained

losses

£

 

 

 

Total

£

 

 

Minority interest

£

 

 

Total
equity

£

 

Balance at 1 January 2016

 

4,266,609

 

23,412,246

 

(1,493,470)

 

761,360

 

-

 

-

 

(26,381,417)

 

565,328

 

3,470,079

 

4,035,407

Other transactions with non- controlling interests

 


-


-


-


-


-


18,285

Compound instrument equity component

-

-

33,606

-

33,606

33,606

Total comprehensive income/(loss) for the period

-

-

(2,349,849)

-

-

-

2,478,140

128,291

23,794

152,085











Balance at 30 June 2016

4,266,609

23,412,246

(3,843,319)

761,360

33,606

-

(23,903,277)

727,225

3,512,158

4,239,383






















 

Balance at 1 January 2015


3,239,627

 

23,298,661

 

(1,618,650)

 

761,360

 

112,048

 

299,698

 

(12,752,218)

 

13,340,526

 

 

3,967,394

 

17,307,920

Issue of shares

395,355

-

-

-

395,355

395,355

Adjustment to minority interest capital

-

-

-

-

-

(213,142)

Total comprehensive income/(loss) for the period

-

-

132,496

-

-

-

(1,465,600)

(1,333,104)

(88,989)

(1,422,093)











Balance at 30 June 2015

3,634,982

23,298,661

(1,486,154)

761,360

112,048

299,698

(14,217,818)

12,402,777

3,665,263

16,068,040













NOTES TO THE UNAUDITED HALF-YEARLY ACCOUNTS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2016

 

 

1.      Accounting policies

 

The condensed half-year accounts have been prepared using policies based on International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board as adopted for use in the EU.  The condensed half-year accounts have been prepared using the accounting policies which have been applied in the Group's statutory financial statements for the year ending 31 December 2015

 

1.1.   Basis of preparation and going concern

 

Herencia Resources plc ('the Company') is incorporated in England and Wales. The half-yearly accounts for the six months ended 30 June 2016 is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

The half-yearly accounts include unaudited comparative figures for the half year ended 30 June 2015. The comparatives for the year ended 31 December 2015 are not the Company's full statutory accounts for that period but have been extracted from the statutory accounts for that period which have been delivered to the Registrar of Companies. 

 

The financial reports have been prepared using the historical cost convention and are presented in UK pounds sterling. The half-yearly accounts for the six months ended 30 June 2016 has been prepared in accordance with IAS 34 'Interim financial reporting'.

 

The half-yearly accounts for the six months ended 30 June 2016 has been prepared pursuant to AIM Rule 18, which states "An AIM company must prepare a half-yearly report in respect of the six month period from the end of the financial period for which financial information has been disclosed in its admission document and at least every subsequent six months thereafter (apart from the final period of six months preceding its accounting reference date for its annual audited accounts)."

 

At 30 June 2016 the Group had cash balances of £55,236 and despite further proceeds from the sale of 70% equity in the Paguanta project of USD$1.26m, the Group will need to raise additional funds in 2016 in order to maintain sufficient cash resources for its working capital needs for the next twelve month and to this end, the following is noted:

 

·      Due to the approval by shareholders at the Annual General Meeting held on 29 June 2016 to subdivide each Ordinary Share into 1 ordinary share of 0.01p and a deferred share of 0.09p, the issue of shares as a source of funding is a viable option which has otherwise been unavailable since the last equity raise in September 2015.

 

·      As detailed in Note 8, the Company has entered into funding arrangements by way of Secured Convertible Facilities totalling US$750,000 with two of our major shareholders, the Australian Special Opportunity Fund and Oriental Darius Co. Ltd.  The Shareholders have been very supportive and a total of US$350,000 has been drawn down under this facility to date with a further US$400,000 that can be advanced at the discretion of the Shareholders. 

 

·      As with Paguanta, the Directors continue to actively seek new development opportunities for the other assets in La Serena, Guamanga and Picachos.  

 

The Directors have a reasonable expectation that the Group has adequate access to resources to continue in operational existence for the foreseeable future and continue to meet, as and when they fall due, its planned exploration and development activities and other liabilities for at least the next twelve months from the date of approval of these financial statements. For this reason the Directors continue to adopt the going concern basis in preparing these financial statements.

 

However, there can be no guarantee that the required funds will be raised within the necessary timeframe, consequently a material uncertainty exists that may cast doubt on the Group's ability to continue to operate as planned and to be able to meet its commitments and discharge its liabilities in the normal course of business for a period not less than twelve months from the date of this report.

 

2.       Income/(loss) per share

         

The basic income/(loss) per ordinary share of 0.06p (30 June 2015: (0.04)p; 31 December 2015: (0.36)p)for the Group has been calculated by dividing the income/(loss) for the period attributable to equity holders of £2,478,140 (30 June 2015: (£1,465,600); 31 December 2015: (£13,741,247) by the weighted average number of ordinary shares in issue of 3,770,137,684 (30 June 2015: 3,528,165,440; 31 December 2015: 3,770,137,684).

 

The diluted loss per share has been calculated using a weighted average number of shares in issue and to be issued of 3,815,137,684 (30 June 2015: 3,573,165,440; 31 December 2015: 3,815,137,684). The diluted loss per share has been kept the same as the conversion of share options decreases the basic loss per share, thus being anti-dilutive.

 

3.       Segmental information 

 

The activities of the Group are broken down into the operating segments of Mineral Exploration and Central Costs. Segment information by operating segment and by region is as follows: 

 

Segment information by operating segment

 

Mineral Exploration

Central
Costs

Total


£

£

£

6 months ended 30 June 2016 (unaudited)




Administration expenses (excluding non-cash items)

(199,271)

(210,496)

(409,767)

Finance revenue

-

4

4





Non-cash expenditure:




Depreciation expense

(12,000)

(3,140)

(15,140)

Foreign exchange gain/(loss)

2,933,600

(8,914)

2,924,686

Segment result

2,722,329

(222,546)

2499,783





As at 30 June 2016




Segment assets

5,308,985

906,707

6,215,692

Segment liabilities

(951,159)

(1,025,150)

(1,976,309)

Net assets

4,357,826

(118,443)

4,239,383





Segment information by operating segment

 

Mineral Exploration

Central
Costs

Total

 


£

£

£

 

6 months ended 30 June 2015 (unaudited)




 

Administration expenses (excluding non-cash items)

(752,384)

(282,506)

(1,034,890)

 

Finance revenue

-

173

173

 





 

Non-cash expenditure:




 

Depreciation expense

(16,022)

(1,393)

(17,415)

 

Foreign exchange gain/(loss)

(486,809)

(493)

(487,302)

 

Segment result

(1,255,215)

(284,219)

(1,539,434)

 





 

As at 30 June 2015




 

Segment assets

15,949,610

991,048

16,940,658

 

Segment liabilities

(597,613)

(275,005)

(872,618)

 

Net assets

15,351,997

716,043

16,068,040

 









12 months ended 31 December 2015 (audited)




Administration expenses (excluding non-cash items)

(1,614,406)

(518,779)

(2,133,185)

Finance revenue

-

227

227





Non-cash expenditure:




Depreciation expense

(37,226)

(2,786)

(40,012)

Impairment of exploration

(10,908,123)

-

(10,908,123)

Foreign exchange gain/(loss)

(889,897)

(6,107)

(896,004)

Segment result

(13,449,652)

(527,445)

(13,977,097)

 

As at 31 December 2015




Segment assets

4,749,541

945,891

5,695,432

Segment liabilities

(1,175,993)

(484,032)

(1,660,025)

Net assets

3,573,548

461,859

4,035,407

 

Segment information by region






External Revenue


Non-current assets


 

30 June

 2016

(unaudited)

 

30 June

2015

(unaudited)

 

31 December 2015

(audited)


 

30 June

2016

(unaudited)

 

30 June

2015

(unaudited)

 

31 December 2015

 (audited)


£

£

£


£

£

£









 

Australia

-

-

-


-

4,533

3,140

 

Chile

-

-

-


4,892,643

16,503,962

5,190,101

 

Group

-

-

-


4,892,643

16,508,495

5,193,241

 

 

At the end of the financial period, the Group had not commenced commercial production from its exploration sites and therefore had no turnover in the period.






 

4.   Intangible assets and goodwill

Goodwill

 

Exploration & evaluation costs

Total

 


£

£

£

 

Cost




 

As at 1 January 2016

1,000,000

15,299,858

16,299,858

 

Additions

-

348,002

348,002

 

Asset classified as held for sale

-

(11,779,525)

(11,779,525)

 

Effect of foreign currency exchange differences

-

599,810

599,810

 

At 30 June 2016

1,000,000

4,468,145

5,468,145

 

 

Impairment




 

As at 1 January 2016

(125,000)

(11,455,256)

(11,580,256)

 

Asset classified as held for sale

-

10,908,123

10,908,123

 

As at 30 June 2016

(125,000)

(547,133)

(672,133)

 





 

Carrying amount

As at 30 June 2016


875,000

 

3,921,012


4,796,012

 

As at 31 December 2015

875,000

3,844,602

4,719,602

 





 

The exploration and evaluation costs as at 30 June 2016 relate entirely to Guamanga (£1,652,120), La Serena (£223,859) and Picachos (£2,045,033) projects located in Chile, South America.

 

In respect of the Paguanta Project, due to pending sale for the 70% equity in the Paguanta project this asset has been reclassified as assets held for sale.

 

 


 

5.   Property, plant and equipment


30 June

30 June

31 December



2016

  2015

2015



(unaudited)

(unaudited)

(audited)



£

£

£






At cost


99,812

304,100

302,625

Accumulated depreciation


(69,704)

(238,128)

(261,188)

Total property and equipment


30,108

65,972

41,437

 

Movements in carrying amounts





Movement in the carrying amounts for each
class of plant and equipment between the
beginning and end of the financial period:




 

Balance at the beginning of the period

41,437

70,360

70,360

 

Additions at cost

-

-

3,197

 

Depreciation expense

(15,140)

(17,415)

(40,012)

 

Asset classified as held for sale

(1,879)

-

-

 

Effect of foreign currency exchange differences

5,690

13,027

7,892

 

Carrying amount at the end of the period

30,108

65,972

41,437

 






6.   Held for sale

30 June

30 June

31 December

 


2016

2015

2015

 


(unaudited)

(unaudited)

(audited)

 


£

£

£

 

Assets held for sale




 

Receivables

293,979

-

-

 

Exploration & evaluation costs

871,402

-

-

 

Property, plant and equipment

1,879

-

-

 


1,167,260

-

-

 

 

Liabilities held for sale




Trade and other payables

335,360

-

-

Provisions

55,286

-

-


390,646

-

-

 

On 28 July 2016, the Company announced that it had completed the sale with Golden Rim Resources Limited ("GMR") to acquire Herencia's wholly owned subsidiary Paguanta Resources (Chile) SA ("PRC") for a total of up to US$2.3 million in cash and GMR equity, and GMR agreeing to pay up to US$2.1m towards various contingent liabilities. PRC holds 70% of Compania Minera Paguanta S.A. which holds mineral concessions at the Paguanta silver-lead-zinc-copper project in northern Chile. As at 30 June 2016, an amount of £158,577 which represents part proceeds from this sale has been received and included within Trade and other payables.

 

Impairment losses relating to the disposal

An impairment charge of £10,908,123 was booked 31 December 2015 following a review of the carrying value of the project and cash consideration to be received. The impairment loss has been applied to reduce the carrying amount of the Paguanta Project deferred exploration & evaluation costs.

 

7.   Provisions

30 June

30 June

31 December


2016

2015

2015


(unaudited)

(unaudited)

(audited)


£

£

£

Decommissioning expenditure




Balance at the beginning of the period

46,566

51,672

51,672

Effect of foreign currency exchange differences

8,720

(2,933)

(5,106)

Provision classified as held for sale

(55,286)

-

-

Balance at the end of the period

-

48,739

46,566

 

Employee benefits




Balance at the beginning of the period

72,738

37,926

37,926

(Utilised)/arising during the year

-

(3,156)

37,233

Effect of foreign currency exchange difference

10,905

(2,588)

(2,421)

Balance at the end of the period

83,643

32,182

72,738

 

Comprising




Current

83,643

32,182

72,738

Non-current

-

48,739

46,566


83,643

80,921

119,304






8.   Loans and borrowings

30 June

30 June

31 December


2016

2015

2015


(unaudited)

(unaudited)

(audited)


£

£

£

Current




Convertible note

68,888

-

-

Director loans

430,735

150,000

250,000


499,623

150,000

250,000

 

Non-current




Convertible note

    147,278

-

-

 

 

Director Loans and Related Party Transactions

During the six months ended 30 June 2016, the Directors advanced further loans of £270,735 to the Company for working capital purposes comprising of £240,735 advanced by John Moore and £30,000 advanced by John Russell. These loans are unsecured and non-interest bearing with the exception of £210,735 (USD$300,000) which has an interest rate of 15% pa.  Initial repayment terms provide that the loans be repayable within 12 months, however this can be extended if required.  In addition, the total loans advanced by John Russell and Graeme Sloan have agreed to be reduced by 50% resulting in reduction of £90,000. 

 

No other related party transactions have occurred during the period.

 

Convertible Note

During the six months ended 30 June 2016, the Company entered into the following funding arrangements with two of its major shareholders, the Australian Special Opportunity Fund ("Lind Partners") and Oriental Darius Co. Ltd ("Oriental"). 

 

These funding arrangements are by way of Secured Convertible Facilities totalling US$750,000 of which US$350,000 has been drawn down with a further US$400,000 that can be advanced at the discretion of the Shareholders.

 

·           On 26 February 2016 and 18 March 2016, the Company confirmed it had received US$50,000 loan from the Lind Partners and Oriental respectively. The loans are interest free and repayable after 6 months and, subject to shareholder approval, will be convertible into ordinary shares at 0.01p.

 

·           On 5 April 2016, Herencia announced that it executed a legally binding term sheets with the Shareholders to advance the Company up to US$500,000 by way of a Secured Convertible Facility, subject to the satisfaction of certain conditions.  The funds will be divided into two Tranches (Tranche 1 totalling US$200,000 and Tranche 2 totalling US$300,000).  As at 30 June 2016, US$200,000 has been fully drawn under Tranche 1.

 

·           On 7 June 2016, the Company announced that it has entered into a further Secured Convertible Facility with the Shareholders to advance the Company up to US$150,000.  The funds will be divided into two Tranches (Tranche 1 totalling US$50,000 and Tranche 2 totalling US$100,000). As at 30 June 2016, US$50,000 has been fully drawn under Tranche 1.

 

Full details of the terms and conditions of the Secured Convertible Facilities including the conversion issue price and options are contained in the respective announcements.

 

As at 30 June 2016, the convertible note has a carrying value of £216,166 with £33,606 being classified as 'other reserve' in equity.






 

9.   Minority interest

30 June

30 June

31 December


2016

2015

2015


(unaudited)

(unaudited)

(audited)


£

£

£





Called up share capital

6,031,971

6,018,242

6,013,686

Accumulated losses

(1,795,052)

(1,654,680)

(1,806,024)

Translation reserve

(724,761)

(698,299)

(737,583)


3,512,158

3,665,263

3,470,079

 

10.   Share capital

30 June

30 June

31 December


2016

2015

2015


(unaudited)

(unaudited)

(audited)


£

£

£

Allotted, issued and fully paid :




4,266,609,563 ordinary shares of £0.01p each and 4,266,609,563 deferred shares of £0.09p each




(30 June 2015: 3,634,981,939  ordinary shares,




31 December 2015: 4,266,609,563 ordinary shares)

4,266,609

3,634,982

4,266,609

 

Movement in share capital during the period comprises:

Number of
Ordinary Shares

Number of
Deferred Shares


Share
Capital


Share Premium




£

£

Issued and fully paid

As at 1 January 2016 shares

 

Subdivision of ordinary shares:

Ordinary shares

Deferred shares                                    


4,266,609,563

 

 

-

-

 

-

 

 

-

4,266,609,563


4,266,609

 

 

(3,839,949)

3,839,949


23,412,246

 

 

-

-






Balances as at 30 June 2016

4,266,609,563

4,266,609,563

4,266,609

23,412,246

 

At the Annual General Meeting of the Company held on 29 June 2016, shareholders approved the subdivision of each ordinary share of 0.1p into 1 ordinary share of 0.01p and 1 deferred share of 0.09p.

 

11.   Control

 

No one party is identified as controlling the Company.

 

12   Subsequent events

 

The following subsequent events have arisen since the end of the reporting date and the date of this report:

 

·      On 28 July 2016, the Company announced that it had completed the sale with Golden Rim Resources Limited ("GMR") to acquire Herencia's wholly owned subsidiary Paguanta Resources (Chile) SA ("PRC") for a total of up to US$2.3 million in cash and GMR equity, and GMR agreeing to pay up to US$2.1m towards various contingent liabilities. PRC holds 70% of Compania Minera Paguanta S.A. which holds mineral concessions at the Paguanta silver-lead-zinc-copper project in northern Chile.

 

·      On 26 August 2016, 380,662,352 shares were issued to the Australian Special Opportunity Fund, a New York-based institutional investor managed by The Lind Partners as satisfaction of conversion of the Short Term Loan of US$50,000 at a share price of 0.01p per share.

 

Following the above share issue, the number of ordinary shares in issue is 4,647,271,915.


 

No other matter or circumstances have arisen since the end of the reporting date and the date of this report which significantly affect the results of the operations of the Company.






13.   Contingent liabilities and capital commitments

 

There have been no changes to the contingent liabilities capital commitments as disclosed in the most recent annual financial report.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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