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Xtract secures equity
Posted on Thursday, 10 August 2017 10:12
UK gold and copper explorer Xtract Resources has announced a share placing valued at up to GBP 1.30 million in order to repay YA II EQ’s existing loan note facility in full and for general working capital purposes.

The company is issuing 76.47 million stocks, representing a 29.1 per cent stake in the company’s enlarged capital, at GBP 0.02 apiece across three separate tranches.

Commenting on the cash call, chairman of the “The funds have been raised to fully settle the amount due to YA II EQ. This decision was made on the basis that the Company has determined the full number of shares to be issued and therefore would not face an uncertainty as to the future number of shares to be issued to YA and therefore conserve future earnings for company development.”

Beaumont Cornish has been hired to advise Xtract on the deal, which is subject to a number of customary closing conditions, including the go-ahead from stockholders.

The shares are expected to be admitted to trading on 23rd August 2017.

No further details of the transaction were disclosed.

London-listed Xtract is a resource, development and mining company, with a current focus on the Manica mine in Mozambique.

In the 12 months ended 31st December 2016, the company posted a net loss of GBP 8.94 million, widened from a loss of GBP 4.58 million in the previous year.

Earlier this year, Xtract unveiled a share offering worth around GBP 3.76 million and Auroch Minerals reduced its stake in the company by 4.2 per cent in a deal worth around GBP 247,800.

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