Xtract raises £1m, moves closer to Manica sale

20th Jul 2016 16:29

(ShareCast News) - Xtract Resources updated the market on the disposal of its interest in the Manica Gold Project in Mozambique on Wednesday, and confirmed the completion of a placing of 1,538,461,538 new ordinary shares of 0.01p at a price of 0.065p to raise £1m.The AIM-traded firm said it has made an agreement with Auroch Minerals to pay $0.75m of the remaining $2.5m relating to the acquisition of Manica in June 2015, on 20 July 2016, principally through a draw-down of £0.67m from the company's SEDA facility with YA Global Master.It has also agreed with Nexus Capital and Mineral Technologies International to amend the terms of the proposed acquisition of Manica by the two firms, subject to certain conditions."The revised terms include, inter alia, the purchasers making an initial payment of $2m by 12 August, in return for a reduction in the total cash consideration for the transaction from $17.5m to $15m," the board said in a statement.It added that Xtract has completed all studies with regard to the Bankable Feasibility Study at Manica and Venmyn Deloitte is undertaking an independent review of the results, with the BFS expected to be completed in August.Seperately, the company confirmed it has raised £1m through a placing of 1,538,461,538 new ordinary shares at 0.065 pence per share.The board said this is "principally to fund ongoing development work at the Chepica gold mine in Chile where the company had deemed it necessary to refurbish the existing crushing plant and construct a new flotation plant that will resolve the issues around producing saleable gold concentrate."