30th Oct 2006 10:42
Herencia Resources PLC30 October 2006 For immediate release 30 October 2006 Herencia Resources plc ("Herencia" or the "Company") Placing The Company announces that it has completed an institutional placing to raise£900,000 from the issue of 90,000,000 new ordinary shares of 0.1p each ("Ordinary Shares") at a price of 1.0p per share (the "Placing"). Application hasbeen made for the new Ordinary Shares to be admitted to trading on AIM anddealings are expected to commence on 2 November 2006. Following the Placing, thenumber of Ordinary Shares in issue has increased to 328,066,667. The funds raised from the Placing will be used during 2007 to: • Advance the work program and follow-up drilling on the Iquique Project; • Follow-up on the drilling program due to commence shortly at the Paguanta Project; • Pursue new project development opportunities; and • Fund general working capital requirements. As previously announced, Mineral Securities Limited ("Minsec") is subscribingfor 20,000,000 Ordinary Shares under the Placing. Minsec is Herencia's majorshareholder and following completion of the Placing will hold 136,666,667Ordinary Shares, which represents approximately 41.7% of the issued sharecapital of the Company. Commenting on the Placing Michael Bohm said "The Company had funds on hand tocommence the upcoming drill program at Paguanta, which once completed wouldachieve the 50% earn-in milestone on that project by year end. With thesuccess of this Placing, Herencia can progress with its planned programs forboth the Iquique and Paguanta Projects during 2007, whilst also pursuing newdevelopment opportunities in Latin America." For more information please contact: David Youngman, WH Ireland +44 161 832 2174 Michael Bohm, Herencia Resources plc +61 8 9221 7466 Further background details on the Company can be found atwww.herenciaresources.com **ENDS** This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Herencia Resources