30th Sep 2014 08:29
LONDON (Alliance News) - Herencia Resources PLC Tuesday said it has completed a subscription and placing to raise about GBP2.4 million by issuing 795.7 million new shares at 0.3 pence each, as it looks to advance its Picachos project towards production.
In a statement, Herencia said it was important to secure the funding in order to ensure it can continue to push forward its work programmes. Herencia will use the funds to fast track an infill drill programme, complete a mine feasibility study, and get the mine permitting approval process underway.
"This placing has brought us one step closer to realising our goal of advancing the Picachos copper project as a low cost mining operation with the aim of production before the end of next year. Achieving this goal would transform Herencia into the producer ranks, and with very little capital expended," Managing Director Graeme Sloan said in a statement.
"In addition to the drilling program and mining study due to commence shortly, we will be looking to structure a financing package for mine commencement, weighted toward project debt financing," Sloan said.
"With this in mind, we have already been approached by a number of groups interested in the Picachos Project, and as such will look to advance discussions regarding project financing in parallel with the upcoming drilling and mining studies," Sloan added.
WH Ireland Limited and RFC Ambrian Ltd handled the subscription and placing.
Herencia shares were Tuesday quoted down 22% at 0.315 pence.
By Samuel Agini; [email protected]; @samuelagini
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