15th Apr 2016 09:03
LONDON (Alliance News) - Herencia Resources PLC soared on Friday after it said it has been advanced the first USD100,000 from its recently secured loan, and said it expects to draw down another tranche of the same size shortly.
Herencia had said it was close to securing the financing on Thursday, but confirmed it has drawn down part one of the first tranche, totalling USD100,000, on Friday. Importantly, those funds will only cover the company's working capital for "approximately a further week".
The Australian Special Opportunity Fund and Oriental Darius Co Ltd are the shareholders providing the USD500,000 loan, and Herencia said it expects to draw down a further USD100,000 "shortly," which would keep the company ticking over until "end of April/early May," it said.
A long-term solution to its financing woes will still need to be found.
Herencia shares were up 58% to 0.0750 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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