14th Apr 2016 15:12
LONDON (Alliance News) - Herencia Resources PLC shares soared on Thursday after it said it is "close to" finalising the drawdown of USD100,000 from a loan that is being provided by two of its shareholders.
Herencia shares were up 40% to 0.0454 pence per share on Thursday afternoon.
The Australian Special Opportunity Fund and Oriental Darius Co Ltd are the shareholders providing the USD500,000, and that first drawdown will be part one of the first tranche, the company said in a statement.
"The directors are confident this money will arrive in the next few days but there can be no guarantee that any funds will be drawn down. At this stage, the working capital restrictions of the company remain," said Herencia.
This will be one of a string of loans the company has been forced to take out due to its fragile financial position.
Chairman John Moore and major shareholder Lind Partners have recently made loans to the company. One of the reasons Herencia is struggling financially is because of its deal with Chilean mining company Next Minerals, its partner on the Picachos and Pasitzal copper projects.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Herencia Resources