Major shareholder backs Herencia fund raising

24th Jun 2011 07:56

Chilean mining company Herencia Resources has completed a placing of 125m new shares at a modest discount to Thursday's closing mid-market price, as a result of which major shareholder Nyrstar now has a 10.15% stake in the company.Nyrstar subscribed for 12.75m shares at the placing price of 2.25p per share, while Megeve Investments, a Chilean family investment fund, ploughed £0.63m into the company, also paying 2.25p per share for its stake.At 8:16am (24/6/11) in London, Herencia's shares were trading at 2.5p, up one-eighth of a penny on the day.The £2.8m raised through the placing will be used to expedite activity at the new Guamanga copper and gold project in Chile, and to pay for engineering works and the exploration of a new vein at the company's Patricia asset. Some of the funds will also be used for the planned drilling of a deep exploration hole at the La Rosa porphyry target, with any proceeds left over being used for general working capital purposes."The placing was very well supported and I believe it puts the company in a strong position to advance its projects, which now includes the exciting Guamanga Copper-Gold Project," said managing director Michael Bohm, whose wife subscribed for 1.9m of the newly issued shares, bringing the Bohm family's holding up to 2.1% of Herencia. --jh