Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Xtract Resources strikes new funding for working capital

It has struck a subscription deal and equity swap agreement with investor YA II EQ, Ltd
Gold nuggets
The firm is now focused on realising value from Manica

Xtract Resources PLC (LON:XTR) announced new funding arrangements to fund short and medium-term needs as it focuses solely on its Manica gold project in Mozambique.

It has struck a subscription deal and equity swap agreement with investor YA II EQ, Ltd (an affiliate of the former YA Global Master), which will see YA ultimately gain a 19.14% stake in Xtract.

The subscription sees the miner gain £980,000 in cash in exchange for 3.5bn shares.

Xtract will initially retain £110,000 of the proceeds for working capital purposes, while the remaining £870,000 will be used to make payments under the equity swap deal.

YA II EQ, Ltd will make 12 monthly payments to Xtract of £72,500 at the end of each month, commencing with 30 November 2016, which will be settled with shares.

Xtract executive chairman Colin Bird said: "As previously reported, the company had over previous months encountered challenges at Chepica and Manica which required attention, and the same time provided opportunities.

"The focus of the company is now solely on our project at Manica. We have entered into this new funding arrangement to ensure the company remains funded for its short and mid-term progress. As the company moves forward to ensure Manica's value is fully released, shareholders will be kept updated and fully informed on direction".

The group also has a loan and what’s known as a standby equity distribution agreement (SEDA) with Yorkville.

View full XTR profile View Profile

Xtract Resources PLC Timeline

Newswire
December 06 2017

Related Articles

1506597357_Rare-earths.jpg
September 28 2017
Construction work at the mine and plant in Burundi is now nearing completion
Tyranna Resources' Bruno Seneque discussed pending gold assays at Proactive's CEO Sessions
July 27 2017
Bruno Seneque talked gold discovery streak at Proactive's CEO Sessions.
1505939625_cobalt-on-periodic-table-2.jpg
September 20 2017
Cruz is cashed up and exploring across a range of properties in the US and Canada..

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use