Xtract settles with Auroch over Manica Project acquisition

9th Feb 2017 16:13

(ShareCast News) - Xtract Resources announced on Thursday that it had reached an agreement with Auroch Exploration, regarding the outstanding amounts owed by the company to Auroch in relation to the acquisition of the Manica Gold Project.The AIM-traded firm said the settlement reached was over the outstanding debt of $1,75m, with $0.75m to be settled by the issue of a convertible loan note to Auroch.It said the balance would be structured as a $1m loan agreement, and a royalty agreement would be entered into by way of security for the loan notes and loan agreement, and terminate upon full settlement of the debt."I am pleased that this outstanding matter has been satisfactorily resolved," said chairman Colin Bird."This represents another step forward for the Manica Project and brings certainty where previously unresolved issues remained between Xtract and Auroch."I look forward to delivering the DFS before month end."Auroch executive chairman Glenn Whiddon said he was pleased that the debt repayment had been amicably settled."I am sure that the new management will unlock the value in the Manica area which undoubtedly exists."