Business
Settlement with Auroch Exploration Pty Ltd
Settlement with Auroch Exploration Pty Ltd.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4809W Xtract Resources plc 09 February 2017 \n\n \nFor immediate release\n 9 February 2017\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\nSettlement reached with Auroch Exploration Pty Ltd\n \n \nThe Board of Xtract is pleased to announce that the Company has reached an agreement with Auroch Exploration Pty Ltd (\"Auroch\") regarding the outstanding amounts owed by the Company to Auroch in relation to the acquisition of the Manica Gold Project. \n \nHighlights\n \n· Settlement reached with Auroch relating to the outstanding debt owed by Xtract of US$1,748,136\n· US$748,136 to be settled by the issue of a convertible loan note to Auroch \n· Balance structured as a US$1 million loan agreement\n· Royalty agreement entered into by way of security for the loan notes and loan agreement and will terminate upon full settlement of the debt\n \nColin Bird, Chairman said: \n \n\"I am pleased that this outstanding matter has been satisfactorily resolved. 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\".\n \nGlenn Whiddon, Executive Chairman of Auroch said: \n \n\"I am pleased that the debt repayment has been amicably settled. I am sure that the new management will unlock the value in the Manica area which undoubtedly exists.\"\n \nBackground\nAs announced on 30 September 2016, deferred consideration of US$1.65 million remained outstanding and payable by the Company to Auroch in respect of the acquisition of Manica gold project (\"Manica\") in Mozambique and that the Company was in further discussions to resolve the amounts due to Auroch. \n \nThe Company and Auroch have now agreed the terms for the settlement of this debt which, including further accrued but unpaid interest, amounted to US$1,748,136 at the last practicable date (the \"Manica Debt\"). The settlement of the Manica Debt has been structured as a convertible note agreement for US$748,136 (\"Convertible Loan Note\"), a royalty agreement over production at Manica in Auroch's favour (\"Royalty Agreement\"), a loan ...