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

Xtract Resources to make a US$700,000 strategic convertible loan notes investment in Moz Gold

The AIM listed firm said it is to make an initial convertible loan of US$400,000 to Moz Gold, with the loan and interest at 30% per annum to be repaid over 5 months
Gold bars
Xtract added that it has the right to convert the loan at any time into a 25% equity interest in Moz Gold

Xtract Resources PLC (LON:XTR) is to make a US$700,000 strategic investment in Moz Gold Limitada, the firm which currently operates the M Block in the Western mining area of its Manica mining concession in Mozambique.

The AIM listed firm said it is to make an initial convertible loan of US$400,000 to Moz Gold, with the loan and interest at 30% per annum to be repaid over 5 months. Xtract added that it has the right to convert the loan at any time into a 25% equity interest in Moz Gold.

READ: Xtract Resources expects “significant increase” in production at Manica after agreeing improved deal with contract miners

The firm said it has also agreed to provide a further US$300,000 convertible loan to Moz with the right to convert that for a further 10% interest in Moz Gold

The company noted that Moz Gold is now in commercial production on the Manica M Blocks, which are wholly-owned by Xtract’s Mozambican subsidiary, Explorator Limitada.

Colin Bird, Xtract’s executive chairman commented: "As owners of the Manica concession, Xtract consider it of shareholder benefit to take a bigger stake in gold production from the concession, since we consider the revenues will be long life and sustainable.”

He added: “This agreement should significantly enhance Xtract's earnings from alluvial activities well beyond initial expectations. All other components of area consolidation are proceeding satisfactorily, and I look forward to updating before year end or certainly early in the new year".

Xtract, which said it is funding the loan from its existing cash resources, saw its shares take on 2.7%, or 0.08p in late morning trading at 2.82p.

READ: Xtract sees first gold poured at Manica

Moz is a private company newly incorporated in Mozambique, and owned by private individuals, which was formed to mine the alluvial gold deposits in the Western area of the Manica concession under contract from Xtract, and it has no other operations.

View full XTR profile View Profile

Xtract Resources PLC Timeline

Newswire
December 06 2017

Related Articles

no_picture_pai.jpg
July 10 2017
Find out more from Lithium Power International Ltd at the Proactive's CEO Sessions.
Picture of pilot plant
April 05 2018
An impressive pre-feasibility study features a pre-tax valuation of $227 million for start-up capital expenditure of $65 million.
1510744989_Tin-ingots.jpg
November 15 2017
AfriTin has listed on the AIM market with plans to position itself as the African tin champion

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 2018

Proactive Investors 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