Herencia Resources (HER) today announces the adjournment of tomorrows General Meeting until the 24th March to enable it to try and arrange a short term facility which will enable it to continue in business. As at the 3rd February it had enough money to keep it going for a month. Without a new loan urgently, it will have to cease trading.
This morning the shares collapsed 40% on the news and it became a penny share compared to a 24p share a year ago. However hope lives eternal in the heart of the gambling investor and it has already soared back to 2p.
6 years or so ago Herencia was one of a band of brothers, tiny mining companies whose names were on the lips of every Aim investor and regarded as shares which could not fail to make them rich. Herencia in particular with its rich ore deposits in Chile was one of the favourites.
Now one by one they are being picked off. If giants of the mining world are in deep trouble, there can be little hope for the minnows, all victims of the huge world wide mining collapse
The minnows however are easy pickings for the financiers and the stock market jackals. The law of the jungle rules and the predatory wolf is king. Why should any one lend money to a tiny mining company which has virtually run out of cash. Once the loan has been spent, the company will only need another.
But that is not the point. The wolf knows that if he refuses a life saving loan to a company like Herencia, it will go bust and that is just what the wolf wants. The wolf, the shark and the jackals of the financial world know that they will then be able to pick up the company’s assets for a song. Even in only four or five years time those once valuable mining rights could again be worth a fortune compared to next months fire sales prices.
Its a cruel cruel world, a world without conscience but it’s the only one we’ve got