1st Aug 2019 15:11
(Alliance News) - Herencia Resources PLC on Thursday said it has entered into a USD300,000 senior secured loan facility with its majority shareholders Australian Special Opportunity Fund and Oriental Darius Co Ltd.
The copper and gold exploration projects in Chile developer said this financing will be provided by way of a secured convertible facility with a face value of USD360,000, the agreed amount to be repaid by the company over the 12-month term of the agreement.
Herencia said Lind Partners and Oriental may each exercise its right to convert USD150,000 of convertible loan notes with a face value of USD180,000 into shares at an exercise price equal to "the next placement price".
The company explained that it entered into this loan facility in order to immediately settle a "windup order" from its former nomad WH Ireland for GBP83,447.42.
"We are pleased with the changes we have made to the company over the last 12 months and believe these changes will lead to the long-term success of the company and the delivery of value to shareholders," said Chief Executive Carl Dumbrell.
Herencia said it has sufficient working capital to meet its cashflow obligations until the end of September, when it plans to raise capital.
The company's shares remain suspended. It plans to publish its 2018 results in the "coming 10 days".