20th May 2015 08:23
LONDON (Alliance News) - Xtract Resources PLC on Wednesday said it has successfully renegotiated its deal to acquire the O'Kiep copper sulphide tailings project in South Africa and said it has drawn down funds from its equity agreement with YA Global Master to repay a debt facility that YA Global Master had provided.
Xtract said it has secured a renegotiated deed of assignment for O'Kiep, which will see the company pay USD2.875 million in cash plus USD375,000 in shares to acquire the project, a 28% reduction in the originally agreed cash portion of USD4 million.
In total, the value of the consideration due from Xtract has been reduced by 19%. It comprises a USD250,000 cash payment due immediately, a USD125,000 cash payment to be made by May 26, then a final cash payment of USD2.5 million due at the start of mining. Xtract also will issue 69.8 million shares to the value of USD375,000.
Xtract also said it has drawn down USD466,000 from its equity distribution agreement with YA Global Master and will use the funds primarily to repay the outstanding balance of a separate loan agreement it has in place with YA Global Master. Under the terms of the deal, Xtract has issued YA Global Master with 149.3 million shares at 0.312 pence each.
In a separate statement issued on Wednesday, AIM-listed investing company Teathers Financial PLC said it has sold its investment in Xtract for GBP72,371. Teathers sold 20 million shares in the company at what calculates to 0.36 pence per share.
Xtract shares were down 1.3% to 0.37 pence on Wednesday, while Teathers shares were up 1.6% to 3.682 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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