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Xtract Resources plc (XTR)

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Thursday 21 January, 2021

Xtract Resources plc

Issue of Equity

RNS Number : 3901M
Xtract Resources plc
21 January 2021
 

 

 

For immediate release

21 January 2021

 

Xtract Resources Plc

("Xtract" or the "Company")

Placing

Total Voting Rights

 

Placing

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that the Company's Broker, Novum Securities, has today conditionally raised £5,000,000 (before expenses) following the placement of 111,111,111 new Ordinary Shares of 0.02p each ("Placing Shares") at 4.5p ("Placing Price") per Placing Share (the "Placing"). The Placing Shares represent 17.9% of the current issued ordinary share capital of the Company.  The Placing Price is at a premium of approximately 24% compared to the 10-day volume weighted average price of 3.63p for the period ended 20 January 2021 (inclusive). In completing the Placing, the Board has utilised share authorities approved by shareholders at the last Annual General Meeting.

 

The net proceeds from the Placing will be utilised by the Company to fund the further development of its exploration and development projects in Australia and in Zambia and provide additional working capital.

 

Colin Bird, Executive Chairman said: "The Company has elected to raise the money based on the very pleasing drilling of the f irst hole in the Phase One diamond drilling programme at the Racecourse Mineral Resource on the Bushranger copper-gold exploration project  located in the Lachlan Fold Belt, New South Wales, Australia as reported over the last week. The drilling results demonstrated a significant mineralised plunge in excess of our expectations, requiring more extensive strike drilling to prove-up width and the tonnage.  The drilling programme will be important to identify the copper grades as well as establish gold grades on the various horizons.

 

The placing funds will also assist in fast-tracking the Eureka project in Zambia and drilling is expected to commence there within the coming weeks. Addison Mining Services has provided a provisional open pit profile for the Eureka Project and the shape grade extraction plan will be finally determined by the drilling.

 

Warrants

In conjunction with the Placing, the Company will issue the Broker 5,555,555 warrants, exercisable in whole or in part at 4.5p per new Ordinary Share within 2 years of being issued.

 

Admission to AIM

Application will be made for admission of the Placing Shares to trading on AIM ("Admission") on or around 4 February 2021. The New Shares will rank pari passu in all respects with the Company's existing issued ordinary shares.

 

 

 

Total Voting Rights

On Admission of the New Shares, the Company will have 731,576,255 Ordinary Shares in issue with voting rights.  Xtract does not currently hold any shares in treasury.  Accordingly, this figure of 731,576,255 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.

 

Further details are available from the Company's   website which details the company's project portfolio as well as a copy of this announcement:  www.xtractresources.com  

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014 on market abuse.   The person who arranged for the release of this announcement on behalf of the Company was Colin Bird, Director.

 

Enquiries :

 

Xtract Resources Plc

Colin Bird,

Executive Chairman

 

+44 (0)20 3416 6471

www.xtractresources.com

Beaumont Cornish Limited

Nominated Adviser and Joint Broker

Roland Cornish

Michael Cornish

Felicity Geidt

+44 (0)207628 3396

www.beaumontcornish.co.uk

 

Novum Securities Limited

Joint Broker  

 

Jon Belliss / Colin Rowbury  

 

+44 (0) 207 399 9427

www.novumsecurities.com  

 

 

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