Herencia Resources secures funding for Chile project

Herencia Resources has secured 15m dollars in funds to develop its Paguanta silver, zinc and lead project in Chile.

The funds will be used to advance the 70% owned project during 2013-14, including the permitting process and undertaking a surface work programme to identify targeted resource drilling and selected exploration activities.

Herencia has identified three untested targets at the site that have potential to add to the existing resource.

The company last Friday struck an equity drawdown agreement for $14.25m and issued a convertible security instrument of $0.75m to the Australian Special Opportunity Fund, a New York based institutional investor managed by The Lind Partners.

The firm has already received $1.2m with $0.75m from the convertible security and $0.45m towards the purchase of ordinary shares in Herencia.

Shares fell 1.24% to 1.19p at 12:19 Monday.

RD