15th Jun 2016 08:33
LONDON (Alliance News) - Herencia Resources PLC on Wednesday said it has received the second tranche of funds from the sale of its stake in the Paguanta gold project in northern Chile, giving it sufficient funds to last through July.
Herencia struck a deal in May to sell its 70% stake in the Paguanta project to Australian-listed Golden Rim Resources Ltd for a total of USD2.3 million, a big discount to the USD12.3 million book value of the assets at the end of June 2015.
Following formal execution of the documentation for the sale of the assets, Herencia said it has received USD100,000 as the second tranche of the deposit due on the deal.
Herencia said the funds should ensure it has sufficient working capital to last until the end of July, but there is no guarantee it will be able to continue trading after that.
However, Herencia said Golden Rim is well-advanced on the due diligence of the acquisition and final completion is expected by July 4.
Herencia shares were up 14% to 0.04 pence on the news.
By Sam Unsted; [email protected]; @SamUAtAlliance
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