StockMarketWire.com - Herencia [LON:HER] was the sector's biggest riser after it secured funding of up to $150,000 while the proposed sale of its 70% interest in Paguanta with Golden Rim Resources continues.

Herencia says it has executed legally binding term sheets with two of its shareholders, the Australian Special Opportunity Fund ('Lind Partners') and Oriental Darius Co to advance the company up to $150,000. The funds will be provided by the shareholders and will be divided into two tranches (tranche 1 totalling $50,000 and tranche 2 totalling $100,000).

Tranche 1 funding will be provided by way of a secured convertible facility with a Face Value of $60,000 the agreed amount to be repaid by the Company over the term of the agreement. Tranche 1 will be drawn down today.

Upon funding the Tranche 1 Facility, the Company has agreed, subject to obtaining all necessary shareholder approvals and consents, to issue the Shareholders options to acquire shares equal to 100% coverage at the time of funding. If granted the Options will be exercisable for 36 months with an exercise price equal to 0.05 pence.

The Tranche 2 funds ($100,000) can only be advanced at the discretion of the Shareholders. Subject to receiving all necessary shareholder approvals and consents, it is agreed that the Shareholders will have the option to convert the Tranche 2 funds into ordinary shares, on the same terms as the Tranche 1 funds are converted. In addition, it is agreed that subject to receiving all necessary shareholder consents and approvals the Company will also issue the Shareholders options equal to 100% of the total value of the Tranche 2 face value, which is $120,000. If granted the Additional Options will be exercisable for 36 months with an exercise price exercise price equal to 0.05 pence.

Herencia announced on 10 May the proposed sale of Paguanta Resources (Chile) SA, a wholly owned subsidiary, to Golden Rim Resources Limited. PRC holds 70% of the shares in Compania Minera Paguanta SA which holds mineral concessions at the Paguanta silver-lead-zinc-copper project in northern Chile.

The company has agreed with Golden Rim to amend the term sheet, so that the parties now have until 13 June to execute formal agreements (the original agreement provided for 6 June).

The company confirms that due diligence investigations are progressing well but completion of the Proposed Transaction is subject to the successful completion of all conditions, including commercial, operating, technical, taxation, legal and other due diligence, being satisfied or waivered by no later than 4 July 2016.

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Central Rand Gold [LON:CRND] has announced a bridge funding facility of up to $4m with Bergen Global and a concurrent subscription to raise $200,000 at a premium with two high net worth individuals.

Central Rand Gold has entered into a convertible securities issuance deed with Bergen Global Opportunity Fund, LP, an institutional investment fund managed by Bergen Asset Management, in connection with an issuance by the company of zero coupon convertible securities having a nominal amount of up to US$4,098,000. The securities will be issued in tranches. The initial convertible security will have the nominal value of US$598,000 and will be issued shortly. Any subsequent convertible securities will be issued at a time agreed between the company and Bergen and will be purchased at their nominal value. The aggregate nominal value of any subsequent convertible securities issued will be determined by mutual consent of the company and Bergen but will not exceed US$3,500,000. Each of the securities will have a term of 24 months.

In addition, the company has undertaken a subscription to raise US$200,000 through the subscription of 4,620,005 new ordinary shares at an issue price of 3.0 pence per ordinary share. The shares have been conditionally subscribed for by two high net worth individuals including an existing shareholder. The investors are not related to Bergen. The issue price represents a premium of approximately 20% to the closing price of 2.50 pence per ordinary share on 6 June.

Separately, the company also announced that it has entered into a binding Joint Venture Tolling Agreement with a third party supplier of ore for the sourcing and processing of gold-bearing material through the metallurgical plant at Central Rand Gold.

The Tolling Venture envisages the processing through the company's metallurgical plant of a minimum of 18,000 tonnes per month, commencing from July 2016. The plant currently has capacity for up to 20,000 tonnes per month and the intention of the parties in the Tolling Venture is to fully utilise that capacity. The material processed under the Tolling Venture will be of a similar nature and grade to the material, which has been historically processed through the metallurgical plant.

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KEFI Minerals [LON:KEFI] posts an operating loss of £22,837,000 for the year to the end of December - down from £23,500,000 in 2014.

Revenues were nil - unchanged from last time . The pre-tax loss fell to £23,206,000 from £23,963,000.

Executive chairman Harry Anagnostaras-Adams said: "2015 was a game changer for KEFI Minerals as it made substantial progress towards becoming a gold producer and continued to make discoveries in one of the world's great under-developed minerals provinces - the Arabian-Nubian Shield.

"In Ethiopia, we completed the DFS, received the Mining Licence and received unprecedented support from the Government of Ethiopia as it marked its approval of the Tulu Kapi project by committing a US$20m equity stake. In Jibal Qutman, we increased the Mineral Resource and produced a positive Preliminary Economic Assessment. As a result, the Board is confident of our strategy and asset base. We have the appropriate mix of technical and financial expertise to prudently progress our projects into profitable gold mines with the aim of maximising and returning value to shareholders via share price appreciation and, ultimately, dividends."

KEFI Minerals also announced that the previously preferred engineering, procurement and construction contractor for the Tulu Kapi project has been replaced with market-leader Lycopodium Ltd resulting in better proposed financial terms and an unchanged timetable.

Anagnostaras-Adams said: "The Board is always mindful of costs and continues to look for every opportunity to de-risk the Tulu Kapi project whilst keeping the project on track. We are fortunate that Lycopodium's proposal not only makes the financial terms better but they have committed to adhere to the current timetable. They have an excellent track record in building gold plants in Africa and their appointment is welcomed by the other syndicate members."

KEFI says Lycopodium is the clear market leader for taking this project to the next stage, with a track record of success in building gold plants in many African countries for over 20 years, and also in its home country, Australia, and elsewhere.

Its terms of engagement as the preferred EPC contractor are reflected within KEFI's most recently reported cost estimates for construction of the processing facilities (see announcement of 2 June 2016). Lycopodium has started work, within the previously-outlined project timetable, and is on track for construction to start Q4-16.

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Gem Diamonds [LON:GEMD] has confirmed that all resolutions proposed at its annual general meeting today were passed.

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Rio Tinto [LON:RIO] is continuing to use its strong liquidity position to reduce gross debt, by commencing cash tender offers to purchase up to $3 billion of its 2018, 2020, 2021 and 2022 US dollar-denominated notes.

This is part of the Rio Tinto Group's ongoing capital management and follows the successful completion of cash tender offers launched in April to purchase $1.5 billion of its 2017 and 2018 notes.

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GoldStone Resources' [LON:GRL] largest shareholder, Stratex International, has agreed to amend the terms of the loan agreement to increase the amount of the unsecured loan from $100,000 up to $350,000. All other terms of the loan agreement remain the same, with the Loan being repayable on or before 31 December 2016 and interest accruing on the outstanding amount of the Loan at 5.0% per annum which is payable quarterly in arrears.

GoldStone also announced it has reached an amicable separation agreement with Jurie Wessels, who resigned as managing director and chief executive.

The board thanked him for his 12 years of service since founding the company and extends its gratitude for his invaluable efforts and contributions to the company's projects since he became CEO in 2009. The board wishes him well for the future.

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Eurasia Mining [LON:EUA] posts a pre-tax loss of £1.7m for the year to the end of December - up from £502,500 in 2014.

At 31 December 2015 the Group had a cash balance of £104,925 to allow it to continue its core project development, limited to desktop studies. This reserve was insufficient for the group to carry on and it raised additional funds through the issue of capital after the year-end.

Chairman Michael Martineau said: "The contracted mining team is mobilising its equipment and infrastructure to the West Kytlim licence area to commence alluvial platinum mining this summer. Exploration companies do not always reach this stage in their evolution and I am delighted to see the fruits of our labour. It is thanks to you, the shareholders, who have supported the Company through some recent difficult times that the Company has now appointed mining contractors with the expectation of positive cashflow in 2016. Of course this is early days, and the current season's production will be modest. However, it allows us to adjust the Company to mining and deal with the inevitable teething problems before we gear up to full production, scheduled for Year 3, i.e. 2018.

"Full production would involve separate washing facilities at 2-3 sites, with the prospect of at least an estimated 10 year life with resources identified that may extend its life further.

"The ramp-up planned for mining, which is being undertaken by OOO SK Region Stroy, is based on converting this year's all-diesel operation to electrically-powered mining. This will involve the installation of a powerline and the use of draglines for waste stripping and ore stockpiling, which can be carried out in winter. The actual platinum washing operations is a summer activity, typically a season extending from late to May to early November.

"At Monchetundra, we are working on completing our filings for a Discovery Certificate, which is the first step in the process of applying for a mining licence. The two target open pit resources are at West Nittis and Loipishnune. This remains a substantial project and consequently we are exploring a number of options including actively seeking a joint venture partner or a sale, a process that has been going on for several months."

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Stratex International [LON:STI] has revised its loan agreement with Goldstone Resources Ltd, in which the company holds a 33.45% interest.

Further to the Company's announcement on 12th April 2016, Stratex has agreed to increase the amount of the unsecured short-term loan facility to Goldstone from $100,000 to $350,000.

All other terms of the Agreement remain the same, with the Loan being repayable on or before 31 December 2016 and interest accruing on the outstanding amount of the Loan at 5.0% per annum which is payable quarterly in arrears.

The Loan will be used to provide general working capital and to satisfy the agreement between Goldstone and its former CEO Mr Jurie Wessels which has also been announced by Goldstone today.




At 4:19pm:

[LON:BEM] Beowulf Mining PLC share price was 0p at 4.25p

[LON:BKY] Berkeley Energia Ltd share price was -0.25p at 34p

[LON:CEY] Centamin PLC share price was +1.9p at 109.7p

[LON:CHL] Churchill Mining PLC share price was 0p at 21p

[LON:CRND] Central Rand Gold Ltd share price was +0.38p at 2.88p

[LON:CZA] Coal of Africa Ltd share price was +0.14p at 5.19p

[LON:FDI] Firestone Diamonds PLC share price was 0p at 30.63p

[LON:FRES] Fresnillo PLC share price was +1.5p at 1153.5p

[LON:GEMD] Gem Diamonds Ltd share price was +1.38p at 134.88p

[LON:HER] Herencia Resources PLC share price was +0.01p at 0.04p

[LON:HOC] Hochschild Mining PLC share price was -2.37p at 152.38p

[LON:KEFI] KEFI Minerals PLC share price was +0.01p at 0.54p

[LON:KMR] Kenmare Resources PLC share price was +0.02p at 0.78p

[LON:RIO] Rio Tinto PLC share price was +0.25p at 2015.75p

[LON:VED] Vedanta Resources PLC share price was -12.7p at 392p



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