13th Nov 2013 08:52
LONDON (Alliance News) - Herencia Resources PLC saw its shares soar Wednesday after Hong-Kong investment fund Shining Capital Management Ltd agreed to provide it with up to GBP2.48 million to facilitate the development of Herencia's main projects in Chile.
Shining Capital will become one of the company's main investors, having agreed to buy in at 0.62 pence a share. It will provide a first tranche of GBP620,000 and a second tranche of GBP1.86 million, and will have a 16.4% stake in the company when the investment in complete.
Herencia said it will cancel a funding facility it has with Lind thanks to the new investment.
The mineral exploration and development company will use the new funds to start a drilling project at its Picachos copper project in Chile in the first half of 2014, accelerating plans to get a maiden resource estimate.
It will also advance work on getting permits, developing logistics and engaging with the loacal community at its Paguanta silver-zinc-lead project in the country. It may also undertake a drilling programme to test the anomolies it has identified adjacent to its current mineral resource area. Lastly, it will continue exploring the Loretto project adjacent to Paguanta and the La Serena project.
"We believe the ingredients for Herencia's success are now in place and we plan to move quickly and confidently to undertake significant value-adding work, which we believe will deliver positive project results and consistent news-flow throughout 2014 and beyond," Herencia Managing Director Graeme Sloan said in a statement.
"We have already established an excellent working relationship with the management team at Shining and I have no doubt this will continue as we progress the projects," Sloan added.
"We see ourselves as long-term supporters of Herencia and we are very supportive of what Graeme and his team are striving to achieve in Chile," Shining Capital Managing Director Jimmy Lim said.
Herencia Resources shares were up 22.45% at 0.6 pence early Wednesday, the biggest gain on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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