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Teathers Financial (TEA)

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Wednesday 13 May, 2015

Teathers Financial

New Investment

RNS Number : 1207N
Teathers Financial PLC
13 May 2015
 

 

13 May 2015

 

Teathers Financial Plc

("Teathers" or the "Company")

New Investment

 

Teathers, the AIM quoted Investing Company with an Investing Policy to invest in AIM quoted companies either on flotation, through secondary offerings or by purchasing shares in the market and unquoted companies, joint ventures or projects which the Board believes will be seeking a quotation on AIM within 12 to 18 months of such investment, is pleased to announce that it made the following investment on 8 May 2015 in accordance with its Investing Policy:

Investment of £50,000 in Xtract Resources Plc (AIM:XTR) ("Xtract")

Teathers invested £50,000 in cash in consideration for 20,000,000 ordinary shares of 1p each in the issued share capital of Xtract (representing approximately 0.32 per cent. of the enlarged issued share capital of Xtract) at a price of 0.25p per share.

On 30 March 2015 Xtract announced that it had raised GBP1.75million that would be used to fund further underground development at the Chepica Gold and Copper Mine in Chile (the 'Chepica Mine') and to carry out drilling and metallurgical test work on two Copper tailings dumps in South Africa (the 'O'Kiep Project' and the 'Concordia Project').  This capital is being applied and has to date resulted in significant improvements at the Chepica Mine. In South Africa, Xtract has signed option agreements on both tailings dumps at the O'Kiep and Concordia Projects and work on these projects is underway.

Xtract has identified two significant acquisition opportunities that management believe could transform Xtract into a mid-tier producer. As a result of these opportunities Xtract has raised GBP3 million to provide it with funds to facilitate certain payments associated with these acquisitions, in the event Xtract elects to proceed. Xtract will provide a further update on these at an appropriate time.

In addition to utilising the capital towards the above mentioned acquisition opportunities, Xtract will also:

-agree a final settlement at a significant discount on all future option payments on the Chepica Mine;

-pay US$500k immediately towards the costs associated with the O'Kiep project in order to facilitate a discount of US$2.5m on the total purchase price;            

-start construction immediately of a pilot plant at the oxide copper project;

 -acquire an additional  250kt of heap leachable material in close vicinity of the oxide copper project that will impact significantly on the production output of the project;

  -negotiate an option on a large surface resource (390kt @ 4.6g/t Au and 0.5% Cu) in close vicinity to the Chepica Mine that would impact significantly on future production and the total resource base at mine; and

  -accelerate exploration to explore the remaining 70% of the concession at the Chepica Mine to target additional mineable surface resources

The audited accounts of Xtract for the year ended 31 December 2013 show net losses of £128,000 (2012: loss of £7,592,000) and net assets of £2,267,000 (2012: £1,372,000). Xtract's unaudited interim results for the six month period to 30 June 2014 show net losses of £1,009,000 (unaudited six month period to 30 June 2013: profit of £9,000) on turnover of £636,000 (unaudited six month period to 30 June 2013: £nil) and net assets of £3,275,000 (unaudited six month period to 30 June 2013: £1,259,000).

Further details on Xtract Resources Plc can be found on its website at www.xtractresources.com

 

Jason Drummond, Executive Chairman of Teathers, commented: "We are delighted to continue to be making progress with our strategy and look forward to providing further updates to Shareholders in due course."

 

 

 

For further information please contact:

 

Teathers Financial Plc


Jason Drummond, Executive Chairman

Tel: 0207 148 3008

 

Beaumont Cornish Limited (Nominated Adviser & Joint Broker)


Roland Cornish / Emily Staples

Tel: 0207 628 3396



Peterhouse Corporate Finance (Joint Broker)


Lucy Williams / Duncan Vasey 

 

Tel: 020 7469 0936

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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