Herencia Resources PLC Funding Draw Down & Working Capital Update (6592Z)
16 March 2017 - 7:34PM
UK Regulatory
TIDMHER
RNS Number : 6592Z
Herencia Resources PLC
16 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 Oriental Darius ("Oriental") 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 Oriental 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 funds draw down will be used to contribute towards the
Pastizal Project payments.
As previously announced a larger funding package is currently
being negotiated with Oriental, the Australian Special Opportunity
Fund ("Lind Partners") and other investors which will allow the
Company to complete the Board restructure and corporate
reinvigoration strategy announced 1 September 2016. A shareholder
update will be provided upon the successful completion of the
larger funding negotiations.
The Company confirms that 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 Oriental 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 Oriental 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 Oriental , 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, Oriental 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 6,773,426,573 Ordinary Shares in the
Company representing 38.76% of the total issued share capital in
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
MSCJFMPTMBJBMBR
(END) Dow Jones Newswires
March 16, 2017 04:34 ET (08:34 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