23rd Sep 2013 12:08
LONDON (Alliance News) - Herencia Resources PLC Monday said due diligence has been completed at its 100%-owned Guamanga Iron Oxide Copper Gold Project in Northern Chile and the company is commencing further testwork at the site.
The resource exploration and development company, operating in Australia and Chile, said OZ Minerals Ltd. has completed due diligence on the project and will commence detailed geophysical work in late September for Herencia.
On August 16, the company said OZ Exploration Chile, which is a subsidiary of Australia's OZ Minerals Ltd., confirmed that due diligence results found the target area was larger than expected and that the terms of agreement made between the two parties will be extended to incorporate the larger project area.
OZ Minerals has already began acquiring additional exploration leases to expand the site.
Herencia said it considers the work being completed by OZ Minerals under their joint venture to be a key investment in its future operations.
"This Agreement confirms that our asset base and local technical team in Chile continue to attract the attention and interest of global resource companies looking to invest in areas of enormous resource potential with low sovereign risk," Managing Director, Graeme Sloan, said in a statement.
Herencia shares were up 6.3% to 0.59 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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