3rd Aug 2015 07:18
LONDON (Alliance News) - Herencia Resources PLC on Monday said it has signed a memorandum of understanding with the Errazuriz Group of Chile about a possible merger of assets, sending shares in the AIM-listed miner higher in early trade.
Herencia said it and Errazuriz have signed an agreement to explore the possible merger of Herencia's Picachos copper assets in Chile with Errazuriz's Tambillos copper mine in order to create a gold-silver joint venture company.
"We have been looking at ways to generate value for shareholders and during our discussions with the Errazuriz Group over toll treatment arrangements at Tambillos; it became clear that an opportunity for a broader relationship could provide a real win-win outcome for both groups," said Herencia Managing Director Graeme Sloan.
Herencia shares were up 13% to 0.18 pence on Monday morning, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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