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Xtract Resources raises £1.7mln to build position around Manica in Mozambique

The junior said it had the opportunity to raise more but wanted to minimise dilution

picture of gold pour
Smelting is now underway at Manica

Xtract Resources PLC (LON:XTR) has raised £1.7mln through a placing to pay off its debts and look at other opportunities in the area surrounding its Manica project in Mozambique.

The junior said it had the opportunity to raise more but wanted to minimise dilution.

READ: More production underway at Xtract’s Manica gold project in Mozambique

The shares were issued at 2.85p, an 8.5% discount to last night’s close, and will see the shares in issue increase by 20%.

Xtract added that alluvial mining was now underway on both sides of the Manica concession with first income expected from the west operation at the end of November.

The east operation delivered its first gold bars in October.

READ: Xtract surges after production starts on eastern half of its Manica concession

Colin Bird, chairman, said: "The placing was considered necessary to satisfy outstanding debt [£530,000] and remove the requirement for further convertible issues.“

The placing will give immediate access to funds to take full advantage of the potential within the Manica area which may include taking equity positions in operations and fast tracking the hard rock propositions, he added.

Quick facts: Xtract Resources PLC

Price: 1.05 GBX

LSE:XTR
Market: LSE
Market Cap: £4.6 m
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