Golden Rim Resources Ltd. (ASX:GMR) executed a conditional term sheet to acquire in Paguanta Resources (Chile) SA from Herencia Resources plc. (AIM:HER) for $4.4 million on May 10, 2016. Under the terms of the deal, consideration comprises of $1.5 million in cash, payment of $2.1 million towards certain contingent liabilities and issue of $0.8 million worth of shares of GMRE to be issued in the event a "decision to mine" is made at the Paguanta Project is made within 5 years from completion of the transaction. GMR has paid a $0.12 million deposit to Herencia Resources and will pay a further $0.1 million upon execution of the formal agreement. Golden Rim Resources Ltd. (ASX:GMR) signed an agreement to acquire in Paguanta Resources (Chile) SA from Herencia Resources plc. (AIM:HER) on June 15, 2016. Golden Rim has arranged to provide Herencia with the second tranche of the deposit, being $0.1 million.

The deal is subject to GMR completing all commercial, operating, technical, taxation, legal and other due diligence to its satisfaction in its sole and absolute discretion, GMR obtaining all necessary approvals (including shareholder approvals) under the Corporations Act 2001(Cth) and/or the ASX Listing Rules for the transaction, the receipt of GMR board approval for the transaction, execution of legally binding agreements, Herencia Resources shareholder approval and other conditions customary. The deal is expected to close by July 4, 2016. Golden Rim and Herencia have agreed to extend the period to execution of the formal agreements until June 13, 2016. The proceeds from the transaction will allow Herencia Resources to clear its balance sheet and provide ongoing working capital to focus on its remaining assets, such as Picachos. The completion date has been extended to no later than July 29, 2016 due to delays with the flow of information. Katy Mitchell of WH Ireland Limited acted as the financial advisor and Jon Belliss of Beaufort Securities Limited acted as the broker for Herencia Resources.