RNS19 Apr 2021 08:09
Highlights
· Placing to raise £5,500,000 (before expenses)
· Contracting 2 drill rigs for an accelerated six-month, 20,000 metre drilling programme at Bushranger
· Planned recruitment of a quality exploration team and site expansion at Bushranger
· Objective of drilling is a potential 2 million tonne copper target
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 £5,500,000 (before expenses) for the Company following the placement of of 98,214,286 new Ordinary Shares of 0.02p each ("Placing Shares") at 5.6p ("Placing Price") per Placing Share (the "Placing"). The Placing Shares represent approximately 13.2% of the current issued ordinary share capital of the Company. The Placing Price is at a discount of approximately 9.6% compared to the closing mid-market price on 16 April 2021 of 6.2p per ordinary share.
The net proceeds from the Placing will be principally utilised by the Company to fund the next stage of exploration development on the Bushranger copper-gold exploration project, located in the Lachlan Fold Belt of New South Wales, Australia. The Phase One drilling has been recently completed producing very good results and indicates a considerably larger mineralised system than previously envisaged by the Company. A small proportion of the funds will also be used to complete the exploration and development phase of the copper and gold mining projects in Zambia and Mozambique, and the balance to provide additional working capital.
In concluding the Placing, the Board has utilised share authorities approved by shareholders at the last Annual General Meeting.
Following the successful Phase One drilling programme, the Company has decided to accelerate the next stage of exploration drilling at Bushranger by undertaking an approximately 20,000 metre drilling programme. The objective is to delineate the necessary 2 million tonnes of contained copper which is the trigger point for the Anglo American buy back option.
Bushranger Phase Two Drill Planning
· The Company is currently modelling all of the results of the Phase One programme and integrating the results of the current geophysical programme
· Contracting the hire of two drill rigs for drilling programmes for up to six months
· Recruiting the necessary geologists for the drilling programmes
· Increase in the drill core handling and storage capacity at site
· Organising core store capability and own core cutting machinery and the logistics connected with speedy turnaround of raw data
· Extension of MIMDAS geophysical survey based on positive initial results and extending the geophysical actives beyond those already planned
Colin Bird, Executive Chairman said: "This fund raise has been implemented on the back the excellent results of the Phase One drilling programme at Bushranger. The Company'
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