13th Dec 2016 11:15
LONDON (Alliance News) - Herencia Resources PLC on Tuesday said it is confident of a successful outcome to its discussions with major shareholders and other sources to provide ongoing working capital and development funds for the Picachos project in Chile.
At the end of last month, the company revealed it was teetering on the edge of collapse after admitting it had not found the funding it needed to keep the business afloat.
On Tuesday, it said that while funding negotiations continue, it has entered into a short-term contract with a third party to outsource some of its Chilean personnel as a way of further minimising operational costs and providing a "modest" revenue stream.
Herencia added that funds derived from this work along with its current cash balance and extensive cost reduction programme are expected to provide sufficient working capital until the end of the year. Further payments for additional work are also expected over the coming weeks.
"Although the directors are confident that the negotiations with the shareholders and other funding sources will be successfully completed, there can be no guarantee of their success or that additional funds will be available to the company. If further funds are not identified by early January then there is no guarantee that the company will be able to continue trading after that date," Herencia said in a statement.
Shares in Herencia were untraded on Tuesday, last quoted at 0.0190 pence.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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