Perth-based Mineral Securities Limited has completed the sale of its interest in the Iquique and Paguanta Projects in Chile to Herencia Resources plc.
Perth-based Mineral Securities Limited has completed the sale of its interest in the Iquique and Paguanta Projects in Chile to Herencia Resources plc, a company listed on the Alternative Investment Market in London.
Pursuant to the sale, Mineral Securities has now been issued with 100 million Herencia shares as consideration, being a 50 per cent interest in the company. Based on the recent share price of Herencia on 5 November 2005 of 1.925 pence, Mineral Securities interest in Herencia is valued at approximately A$4.4 million.
In addition to its 50 per cent interest in Herencia, Mineral Securities is entitled to a further 50 million shares in Herencia to be issued upon Herencia spending US$2 million in aggregate on the Iquique and Paguanta Projects.
The Iquique and Paguanta Projects represent a large tenement area with extensive known mineralised
Exploration in Chile commenced on 3 November 2005 with preliminary sampling in the Iquique project area.
The exploration activities for the next 2 to 6 months will be focussed on the prospective old mine sites at the
Iquique Project, and the walk-up drill targets at Paguanta.
Mineral Securities is currently trading at $1.10.