Herencia Resources has secured a $15m equity drawdown facility from New York-based Lind Partners LLC and it will use the cash to develop the Paguanta project.
Herencia is raising an initial $1.2m from an issue of shares and convertibles. The shares were issued at 0.96p each. Lind will then invest $300,000 a month over 24 months at a price of 91.5% of the volume weighted average share price. This monthly figure could rise to $600,000 if the company agrees.
The facility can be cancelled in six months time for a one-off payment of $125,000.
Nyrstar International has subscribed for shares at 0.96p a share in order to maintain its 10% shareholding.
The Paguanta silver-lead-zinc project in northern Chile is still at the permitting stage and the cash will help to finance work on identifying drilling targets. Money will also be invested in moving the Patricia copper project towards a feasibility study.
At 1.14p a share, Herencia is valued at £19m.
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