Mining company Xtract Resources (http://www.xtractresources.com/) signed an agreement with investment company YA II EQ, Ltd that will provide it with additional capital to develop a gold mine in Manica, Mozambique, the company said in statement on Thursday.
Under the agreement YA II EQ, Ltd underwrites an issue of 3.5 billion new ordinary shares of Xtract Resources at a price of 0,028p or 980,000 pounds, which will give the investment company 19.4% of the share capital of the mining company.
The Manica mine, located about 4 kilometres from the city of the same name, is currently in the implementation phase of the feasibility study and it is expected that operations will begin in April 2017 and that production will be around 48,000 ounces of gold per year.
Xtract Resources will initially retain 110,000 pounds for operating expenses and the remaining 870,000 pounds will be paid by YA II EQ, Ltd in 12 instalments of 72,500 pounds each.
The CEO of Xtract Resources, Colin Bird, is quoted in the statement as saying that the company’s attention is focused exclusively on the Manica project and that the funds obtained now will ensure short and medium term operational funding. (macauhub)