Xtract to raise general working capital through placement

JOHANNESBURG (miningweekly.com) – Diversified metals and minerals producer Xtract intends to raise £220 000, before expenses, through the placement of 1.33-billion shares at 0.01p apiece.

The funds raised would be used for general working capital purposes at its 48 000 oz Manica gold mine, in Mozambique, the company said on Wednesday.

Further, Xtract would issue 666-million placing warrants to the placees on a one-for-two basis, exercisable in whole or in part at 0.02p.

Chairperson Colin Bird intends to subscribe under the proposed placing for 393-million shares enlarging his holding to 483-million ordinary shares, or 2.5% of the company.

In addition, African Pioneer, of which Bird is a director and 9.05% shareholder, also intends to subscribe for 121-million shares, representing a holding of 0.6% of the enlarged share capital of the company.