Xtract Resources PLC (LON:XTR) has raised £1mln to upgrade its Chepica operation in Chile, and revised the sale price of the Manica gold project in Mozambique.
A deal was agreed to sell Manica in May for US$17.5mln but it has been agreed with buyers Nexus Capital Limited and Mineral Technologies International Limited to lower that to US$15 million, the miner said in a wide-ranging update.
Xtract has also struck a deal with Auroch Minerals, in which it will pay US$750,000 of the remaining US$2.5 million relating to its own acquisition of Manica last summer.
To do that, it has drawn down £671,000 from its existing facility with Ya Global, by issuing it with over 1bn of shares at 0.065p each.
Meanwhile, on its loan with YA Global, it has also drawn down US$450,000 to be used to fund the final payments for the bankable feasibility study and general working capital.
As previously revealed, a sale of Manica has been deemed preferable to the firm trying to raise US$35mln to build a mine.
The £1mln placing sees Xtract issue more than 1.5bn shares at 0.065p each.
Issues at the Chepica plant has meant it's been difficult to produce saleable gold concentrate, and after due diligence, the firm now wants to refurbish the crushing plant and build a new modern floatation plant.
Total capital needed is US$510,000 with construction time estimated at 60 days.
Meanwhile, production from underground is ongoing and will continue to build a stockpile of around 20,000 tons during that time, the firm said.
When the work is done, the mine could produce gold concentrate (assuming a gold price of US$1300/oz and tonnage feed of 10,000 tons per month) with a current value of between US$650,000 to US$850,000 per month on a forecasted cost structure of US$280,000 per month, reckons Xtract.
Chief executive Jan Nelson said the focus now was on rebuilding value within the company "as we focus on revitalising the plant at Chepica in order to enable the company to start delivering meaningful production at the mine".