16th Sep 2016 15:49
LONDON (Alliance News) - Herencia Resources PLC on Friday said it is working with interested parties in order to provide additional funds to progress its Picachos project and for working capital purposes.
Herencia said it aims to move Picachos closer to a decision to mine or provide the foundations for potential joint venture scenarios given recent interest in the project.
In preparation for this work, the company has opted to improve its balance sheet and in conjunction with interested parties has used the recent funds from the sale of its 70% ownership of the Paguanta project to Golden Rim Resources to repay the majority of its creditors.
"This places substantial constraints on the company's current working capital position, and whilst there are funding discussions with other interested parties there can be no guarantee that further funding will be provided," Herencia said in a statement.
"However, the directors are working with these interested parties to ensure the previously announced board restructure and corporate reinvigoration is successfully implemented so Picachos and the company's other assets can be progressed to realise the value to all shareholders," the company added.
Shares in Herencia closed down 10% at 0.0270 pence on Friday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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