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SPA on Chepica Gold Copper Mine & Finance Package
SPA on Chepica Gold Copper Mine & Finance Package.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4280V Xtract Resources plc 12 December 2013 \n \n\n \n12 December 2013\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\" or the \"Group\")\n \nSale and Purchase Agreement Signed for Chepica Gold and Copper Mine in Chile \nAgreement of Finance Package \nProposed Waiver of Rule 9 of the Takeover Code\n \nXtract Resources Plc (AIM:XTR) has signed a sale and purchase agreement (the \"Acquisition Agreement\") to purchase a 15% direct interest and earn in option to acquire the remaining 85% interest in the Chépica gold and copper mine together with 100% of the Mejillones Phosphate project in Chile. The Acquisition Agreement is subject to certain conditions precedent, including shareholder approval of the proposed waiver of Rule 9 of the City Code on Takeovers and Mergers (the \"Takeover Code\").\n \nHighlights\n \n· After satisfactory due diligence, Xtract has signed the Acquisition Agreement with Polar Star Mining Corporation (\"Polar Star\") to acquire the entire issued share capital of its wholly owned subsidiary, Polar Mining (Barbados) Limited (the \"Acquisition\"), which is the parent company of a Chilean incorporated entity with a 15% direct interest and earn in option to acquire the remaining 85% interest in the Chépica gold and copper mine near Talca, Chile\n· The consideration for the Acquisition will be £1,250,000, which shall be satisfied by the allotment and issue of 500,000,000 ordinary shares of 0.01 pence each (\"Ordinary Shares\") credited as fully paid at a price of 0.25 pence per Ordinary Share (the \"Consideration Shares\")\n· The Acquisition Agreement is subject to certain conditions precedent including shareholder approval of a proposed waiver of Rule 9 of the Takeover Code (\"Proposed Waiver\") in connection with the allotment and issue to Polar Star of the Consideration Shares\n· The mine target mill capability is 10,500 oz gold equivalent per annum at a production cost of US$700/oz. The mine is in operation and is currently breaking even with positive cash flow targeted from April 2014\n· The Acquisition Agreement takes to 100% the ownership of the Group in the Mejillones Phosphate property in Chile, replacing the staged...