Herencia Resources PLC Funding Draw Down & Working Capital Update (4982Y)
04 March 2017 - 12:37AM
UK Regulatory
TIDMHER
RNS Number : 4982Y
Herencia Resources PLC
03 March 2017
3 March 2017
Herencia Resources plc
("Herencia" or "the Company")
Funding Draw Down
Working Capital Update
Summary
Herencia is pleased to announce that today it received a further
US$50,000 from the Australian Special Opportunity Fund ("Lind
Partners") as part of the Convertible Note facility ("being Tranche
2") announced 19 October 2016. The Tranche 2 funding totalling
US$50,000 will be provided to the Company by Lind Partners by way
of a secured convertible facility ("Tranche 2 Facility") with a
Face Value of $60,000 ("Face Value"), the agreed amount to be
repaid by the Company over the term of the agreement.
Use of Funds and Future Funding
The above funds form part of a larger funding package currently
being negotiated with Lind and other investors. The funds draw down
will be used to support the Company's working capital position
until the larger funding package is in place which is expected to
happen around month end. The larger funding package will allow the
Company to complete the Board restructure and corporate
reinvigoration strategy announced 1 September 2016.
A further update will be provided upon the successful completion
of the larger funding negotiations.
The Company confirms that, following the receipt of these funds,
it believes its working capital position remains satisfactory until
approximately the end of March 2017. However, if the larger funding
package referenced above is not advanced, and if no further source
of funds can be found, it is unlikely that the Company will be able
to continue to trade after this time.
Funding - Tranche 2
As announced 19 October 2016, Tranche 2 funds will have the same
conditions as Tranche 1 which was a 0% interest rate per annum, a
24 month term and will be secured against the Company's assets.
Subject to the Company receiving all necessary shareholders
consents, it is also agreed that the Shareholders will be given the
option to convert any outstanding Face Value amounts into ordinary
shares in the Company at a price per Share equal to the lower of
0.02 pence or, in the event that the nominal value per Share is
reduced in the future, 90% of the average of three daily VWAP's,
chosen by the Investor, during the 20 trading days before the
conversion ("Conversion Price").
Upon funding the Tranche 2 Facility, the Company has agreed,
subject to obtaining all necessary shareholder approvals and
consents, to issue the Shareholders options to acquire shares equal
to 100% coverage at the time of funding (the "Options"). If granted
the Options will be exercisable for 36 months with an exercise
price equal to 0.04 pence. It is agreed that the Shareholders will
have the option to convert the Tranche 2 funds into ordinary
shares, on the same terms as the Tranche 1 funds are converted. The
Tranche 2 funds are subject to receiving all necessary shareholder
approvals and consents. The additional terms of the loan are set
out below.
Additional Conditions
The receipt of the Tranche 2 monies is subject to the following
condition:
1. If required by the Shareholders, the Company will, subject to
receiving all necessary shareholder approvals and consents, execute
and deliver a secured convertible loan note instrument, option
agreement and fixed and floating charge with respect to the Face
Value of the relevant convertible securities.
Shareholder Interest
As set out on 19 October 2016, if Lind Partners was to convert
all its convertible interests in the Company, including those
interests set out in this announcement, then in addition to its
current shareholding it will hold 7,175,491,784 Ordinary Shares
representing 41.06% of the total issued share capital of the
Company.
About Herencia
Herencia Resources plc is an AIM quoted exploration and
development company operating in Chile. In addition to the Picachos
Copper Project, the Company also has the Guamanga Copper Project
and the La Serena Project. As part of an ongoing cost reduction
program, the Company's office located in Perth has been closed and
its Chilean office and workforce restructured. The Company still
maintains a strong albeit much smaller technical and management
team in Santiago, Chile where it has been operating for over eight
years.
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
References in this announcement to exploration results and
potential have been approved for release by Mr Graeme Sloan (BAppSc
Mining Engineering WASM) who has more than 20 years relevant
experience in the field of activity concerned. Mr Sloan is a Member
of the Australasian Institute of Mining and Metallurgy. Mr Sloan
has consented to the inclusion of the material in the form and
context in which it appears.
Further background details on the Company can be found at
www.herenciaresources.com
**ENDS**
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCJJMJTMBJMBJR
(END) Dow Jones Newswires
March 03, 2017 08:37 ET (13:37 GMT)
Herencia Resources (LSE:HER)
Historical Stock Chart
From Apr 2024 to May 2024
Herencia Resources (LSE:HER)
Historical Stock Chart
From May 2023 to May 2024