Business
Manica and Chepica Update and Placing
Manica and Chepica Update and Placing.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 6724E Xtract Resources plc 20 July 2016 \n\n \n20 July 2016\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nXtract Resources Plc \n(\"Xtract\" or \"the Company\")\n \nUpdate on Disposal of Manica Gold Project and Chepica Operations \nand Completion of Placing \n \n \nXtract Resources (AIM:XTR) provides an update on the disposal of its interest in the Manica Gold Project in Mozambique (\"Manica\") and other matters and confirms the completion of a placing of 1,538,461,538 new ordinary shares of 0.01p (\"Ordinary Shares\") at a price of 0.065 pence per share to raise £1 million (before expenses).\n \nSummary\n· Agreement with Auroch Minerals NL (\"Auroch\") to pay US$750,000 of the remaining US$2.5 million relating to the acquisition of Manica in June 2015, on 20 July 2016, principally through a draw-down of £671,000 from the Company's SEDA facility with YA Global Master (\"YAGM\")\n· Agreement with Nexus Capital Limited (\"Nexus\") and Mineral Technologies International Limited (\"MTI\") (together the \"Purchasers\") to amend the terms of the proposed acquisition of Manica by the Purchasers, subject to certain conditions. The revised terms include, inter alia, the Purchasers making an initial payment of US$2 million by 12 August 2016, in return for a reduction in the total cash consideration for the Transaction from US$17.5 million to US$15 million (the \"Revised Consideration\"). \n· Xtract has completed all studies with regard to the Bankable Feasibility Study (\"BFS\") at Manica and Venmyn Deloitte is undertaking an independent review of the results, with the BFS expected to be completed in August 2016. \n· Raised £1 million through a placing of 1,538,461,538 new Ordinary Shares at 0.065 pence per share, 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.\n \nManica Disposal\nFurther to the notification by the Company on 26 May 2016, regarding the proposed disposal of Manica to the Purchasers for a cash consideration of US$17,500,000 (the \"Transaction\"), the Company ...