Aim Rule 26 Compliance

Company Overview
Corporate Governance
Directors
Advisors
Committees
Constitution
UK City Code on Takeovers and Mergers
Admission Document
AIM Releases
Financial Reports
Shareholdings

The information on these pages is set out as required by Rule 26 in the AIM Rules for Companies.

Date of last update: May 2016.

COMPANY OVERVIEW

Herencia Resources plc is a multi-commodity resources company listed on the Alternative Investment Market (‘AIM’) of the London Stock Exchange with a primary focus on developing its high quality Projects in Chile. Herencia has been operating in Chile for over 8 years and is a well-established company in the Chilean resources sector with its main office in Santiago.

Herencia's focus is on bringing the Picachos Copper Project into production as soon as possible. The project presents an opportunity to fast track open pit development with high grade ore to be toll treated through one of a number of processing plants all located within a 40km radius of the Picachos mine, thus significantly reducing both capital costs and permitting timelines.

Herencia has positioned itself to be able to advance the Paguanta Project (zinc-silver-lead) in parallel with forecast improvements in the zinc price.  Herencia has also acquired an exciting tenement package over a potential porphyry target immediately adjacent to Paguanta.

At its Guamanga Project (copper-gold), Herencia is seeking a joint venture partner to advance the project, and at its La Serena tenement packageHerencia has signed an option agreement with a third-party to divest the asset and has received the first option payment due under the option agreement.

With shareholders including the global zinc group Nyrstar out of Zurich, Shining Capital Management out of Hong Kong and the Lind Partners of New York, Herencia is looking forward to moving into the producer ranks as quickly as possible.

Picachos Project

The Picachos Project is located approximately 50km south east of the coastal city of La Serena, Chile, 8km west of the existing large Andacollo copper-gold project operated by Teck Resources (Carmen de Andacollo) and the mining town of Andacollo (population approximately 10,000 people), and 10km south of the privately owned Tambillos copper mine.

The Project is at an altitude of approximately 800m above sea level and is well positioned for infrastructure with existing HV power approximately 3km east of the Project area and is serviced from two all-weather access roads.

Picachos Project area and surrounding landscape

 
 
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Mineralisation

A review of available data and recent site visits have identified up to five separate zones of mineralisation with a combined strike length of over 8km contained within the Project area. In some areas the close relationship of these zones coupled with multiple occurrences of out-cropping wide zones of mineralisation, highlights the excellent potential for large scale open pit mining to take place.

Two distinct styles of mineralisation have been identified:

  1. A high grade “structural” style of mineralisation referred to as “vein” (typically 1 – 5m wide) and
  2. A “lithological” related style of mineralisation or “mantos” (up to 50m wide and potentially wider in some areas). Preliminary geological studies estimate up to two separate zones of mantos mineralisation.

Herencia Resources Managing Director, Graeme Sloan, inspecting current underground workings at Picachos – the high grade copper vein is adjacent to significant widths of mantos style mineralisation

High grade copper ore from current mining activities (left) and oxides (malachite) in mantos mineralisation

High grade stope exposed at surface and surrounding mantos mineralisation (left) and high grade stope and mantos mineralisation at surface (right)

Mining History

Historic mining has focused mainly around the high grade vein, however in some areas the mantos has been mined up to 50m wide. Mineralisation generally occurs from one to five metres below the surface.

In 1994 a small drilling campaign was conducted, by Shell Chile – Division Metales, in the north-west section of the Project area resulting in a number of high grade intersections including 6m at 3.5% Cu and 30.9g/t Ag from 41m and 9m at 1.6% Cu and 9.6g/t Ag from 46m. A channel sampling program was also undertaken by the current owners on the main Leoncito decline which resulted in an average grade of 1.3% Cu along its entire 110m length.

Small scale mining of approximately 4,000 to 10,000 tonnes per month is presently being undertaken by private miners via small open pit and underground mining operations.

Ore is currently being trucked to a Chilean government owned processing plant (ENAMI plant) where it is processed. Historic records provided by the owners indicate typical average mine grades achieved from processing the Picachos ore include:

  • Oxide Ore – 1.7% Cu
  • Sulphide Ore – 2.5% Cu

Herencia’s Managing Director Graeme Sloan (right) and Senior Geologist Antonio Valverde (left) at the portal of the Leoncito decline and the portal entrance of the Leoncito mine (right)

Further photos from the Picachos Project are presented on the Company’s Photo Gallery within this website.

 

CORPORATE GOVERNANCE

The Board of Directors are committed to maintaining high standards of corporate governance.  Whilst the Corporate Governance Code is not compulsory for AIM quoted companies, the Directors intend to apply the principles as set out in the QCA Corporate Governance Code for Small and Mid-Size Quoted Companies 2013 to the extent they believe appropriate given the size and stage of development of the Company.

DIRECTORS

 
Hon John Moore AO
Non-Executive Chairman

The Hon John Moore AO holds a Bachelor of Commerce and Associate in Accountancy from the University of Queensland.   John has had a distinguished career in Australian politics; he was the Minister for Defence, the Minister for Industry, Science & Tourism and Vice President of the Executive Council.  

Prior to entering politics, John Moore was a stockbroker and member of the Brisbane Stock Exchange. He has served on the boards of many broking and banking related companies including Citinational Limited, Merrill Lynch (Aust) Pty Ltd and Grindlays (Aust) Pty Ltd.   John is currently Chairman of ASX-listed Corvette Resources Limited.

In addition to his chairmanship, John's responsibilites at Herencia also include membership of the audit committee.

Jeffrey Williams
Executive Director

Mr Williams has spent over 40 years in the industry, has worked as a professional mining engineer and has experince in the equity markets.  Mr Williams has extensve experience in strategic development including, mine planning, feasiility studies and mine development.

Peter Reeve
Non-Executive Director

Mr Reeve has been involved in the resources industry for over 30 years and, as a professional metallurgist, has held positions with Rio Tinto, Shell-Billiton, Newcrest Mining and Ivanhoe Australia which he co-founded.

ADVISORS

Nominated Adviser
WH Ireland
11 St James’s Square
Manchester
M2 6WH

Nominated Broker

Beaufort Securities Ltd
131 Finsbury Pavement
London, EC2A 1NT

 Auditors
UHY Hacker Young LLP
Chartered Accountants
Quadrant House
4 Thomas More Square
London E1W 1YW
                                                
Solicitors
Watson, Farley & Williams LLP
15 Appold Street
London EC2A 2HB

Cariola Diez Perez-Cotapos
Av. Andres Bello 2711, Piso 19
Las Condes, Santiago - Chile                                

Registrars
Capita Registrars
Northern House
Woodsome Park, Fenay Bridge, Huddersfield, HD8 0LA

Telephone +44 0871 664 0300

Principal Bankers
ANZ Bank
77 Georges Terrace
Perth WA 6000 Australia
                                                
Barclays Bank plc
7th Floor
United Kingdom House
180 Oxford Street
London W1D 1EA

COMMITTEES

The Board of Herencia Resources plc has established the following committee:

Audit Committee

The committee is made up of two Non-executive Directors - Peter Reeve (Committee Chairman) and the Hon. John Moore AO.   The Audit Committee is responsible for reviewing the Company's arrangements with its external auditors, including reviewing the independence and objectivity of the auditors.

The Committee also reviews the appropriateness and application of the Company's accounting policies, including any changes to financial reporting requirements.   The Committee reviews the major financial announcements made by the Company including its interim and preliminary announcements and annual report and accounts.

CONSTITUTION
           
To view a PDF of Herencia Resources Plc Memorandum and Articles of Association,
please click here

UK CITY CODE ON TAKEOVERS AND MERGERS

As announced on 18 September 2013, the Company will be subject to the UK City Code from 30 September 2013. Click here to view AIM release.

ADMISSION DOCUMENTS

Herencia Resources plc was incorporated in the UK in 2005 and its main country of operation is Chile.

Admission Document Feb 05

Admission Document Oct 05

AIM RELEASES

Click here to view AIM releases page

FINANCIAL REPORTS

Click here to view Financial reports page

SHAREHOLDINGS

The Company has 4,266,609,563 shares on issue as at 13 May 2016. There are no restrictions on the transfer of any of the shares on issue. As far as the Company is aware the percentage of issued shares not in the hands of the public is approximately 19%.

Details of Replica Rolex Yacht-Master significant shareholders (>3%) can be viewed here

 

 

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