Herencia Resources close to sale of Paguanta project

Herencia Resources was close to clinching the sale of one of its mining projects as it continued to look for funding amid one of the worst market periods for junior resource companies, the company said in its annual report.

Chile-focused Herencia had yet to be successful in that regard, management admitted, but said it had progressed on a number of negotiations in relation to a potential joint-venture or sale of the flagship Picachos copper project.

Since period end it had also advanced in relation to the sale of its 70.0% stake in the Paguanta project in northern Chile, which it expected to close in July 2016 for about $2.3m in cash and shares plus another $2.1m which would go towards various contingent liabilities.

Looking to 2016, Herencia said it was planning to continue to look for partners to help the company develop Picachos and would consider further acquisition, sales or joint venture opportunities.

Herencia also said it was seeking a joint-venture partner for its Guamanga project targeting iron oxide, copper and gold-style mineralisation.

No work was envisaged for the next year at its La Serena project in Chile.

"Due to the early stage of the development of the Group and the nature of its activities, it is not meaningful to consider a review of the key financial performance indicators in respect of the year," the company said in a statement.

As of 15.38% shares in AIM-listed Herencia were down 15.38% to 0.03p.