30th Sep 2015 13:16
LONDON (Alliance News) - Herencia Resources PLC on Wednesday said the first half of 2015 was focused on development work at the Picachos gold project in Chile, as foreign exchange losses pushed its interim loss wider.
Herencia said it secured the maiden resource estimate for the Picachos project in the first half and, post the period end, signed a memorandum of understanding with the Errazuriz Group of Chile about a possible merger of assets.
Herencia said it and Errazuriz have signed an agreement to explore the possible merger of Herencia's Picachos copper assets in Chile with Errazuriz's Tambillos copper mine in order to create a gold-silver joint venture company.
The company said it is now seeking to advance production at the site as quickly as possible and, via the joint venture with Errazuriz, at a low cost to the company.
The company said its pretax loss for the six months to the end of June was GBP1.5 million, against GBP683,502 a year earlier. The wider loss was driven by the company booking a foreign exchange loss in the half, having made a forex gain a year earlier.
Shares in Herencia were untraded Wednesday, having last traded at 0.0900 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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