23rd May 2014 12:05
LONDON (Alliance News) - Herencia Resources PLC Friday said its pretax loss widened in 2013 as administrative expenses increased slightly and it was hit by a loss on foreign exchange.
The Chile-focused mineral exploration and development company, which is yet to produce any revenues, said its pretax loss widened to GBP3.4 million from GBP2.5 million the previous year.
The company said its administrative expenses increased slightly to GBP2.8 million from GBP2.6 million despite reductions in the overall remuneration of its directors.
However, most of the company's losses were caused by a foreign exchange loss of GBP674,221 during the period. Herencia Resources made a foreign exchange gain of GBP108,558 during 2012.
During the period, Herencia acquired an option to earn a 100% stake in the advanced high-grade Picachos copper project in Chile and completed testing which confirmed the presence of copper mineralisation at the site.
The company also signed an agreement for a share placement to raise roughly GBP2.5 million from the issue of 400 million shares with Shining Capital Management of Hong Kong. The process was completed in January, making Shining Capital the company's largest shareholder.
Herencia Resources said in 2014 it plans to continue drilling at Picachos with the goal of achieving a first mineral resource estimate for the site, to develop its other sites, and to seek to identify new business opportunities in Chile.
Herencia Resources shares were up 2.3% to 0.450 pence Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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