22nd Aug 2019 12:06
(Alliance News) - Herencia Resources PLC on Thursday said it is focusing on its Chilean projects and looking for new South American opportunities as it published its 2018 results showing its loss doubled in the year.
Alongside investment in Chile - where its projects consist of Guamanga, La Serena, and Pastizal & Piachos - Herencia is seeking new copper and gold exploration projects in South America.
The company posted a GBP1.2 million pretax loss for 2018, widened from a GBP555,000 loss in 2017.
This was due to a 25% rise in administrative expenses to GBP855,000 from GBP685,000 and an increase in finance costs to GBP246,000 from GBP73,000.
Moreover, the company swung to a GBP182,000 foreign exchange loss from a GBP48,000 gain the year before and other operating income dropped to GBP7,000 from GBP184,000.
However, Herencia stated that "due to the early stage of the development of the group and the nature of its activities, it is not meaningful to consider a review of the key financial performance indicators in respect of the year".
The company's nominated advisor and broker, WH Ireland Ltd, resigned at the end of July, prompting the company to enter a USD300,000 loan facility at the start of August to settle its WH Ireland windup order for GBP83,447.
At that time, the company said it had sufficient working capital to meet its obligations until the end of September - at which point it intends to raise capital.
The company must appoint a replacement nomad by Tuesday next week or its AIM shares will be cancelled.
Herencia Chair Jeff Williams said the firm "is committed to reduce its debts and invest as much capital as possible into exploration activities".
Shares in Herencia remain suspended, having last traded in February.