EQTEC PLC (AIM:EQT, FRA:KEU) is hitting reset, with plans for an equity fundraising, a debt restructuring and the proposed acquisition of Australian copper-gold exploration interests.
The AIM-traded group said it has conditionally raised £1.3 million before expenses, in a placing priced at 0.035p, with proceeds earmarked for exploration spending and working capital.
It also said it has signed binding heads of terms to restructure about £5.79 million of debt, including converting £1.93 million into equity at the placing price and re-setting the remaining facilities into longer-dated structures.
EQTEC agreed to acquire 99% of the Green Rock gold-copper project in Western Australia and secured an exclusive three-month option, extendable to five months, to acquire 99% of the Peak Hills gold-copper portfolio.
Chief executive James Parsons described it as “the beginning of a new phase".
"[The plans] broaden the group’s portfolio, introduce near-term catalysts from the newly acquired assets which complement the longer-term value development of the group’s existing gasification activities.”
Parsons added: "Copper and gold prices have recently reached record or near-record levels, reflecting exceptionally strong market conditions, which I expect to continue."
In London, EQTEC currently listed shares accounted for the capital reset, losing 26%, down to 0.066p.
Today's proposals are conditional on shareholder approvals at an extraordinary general meeting set for 12 February.