15th Oct 2015 07:49
LONDON (Alliance News) - Xtract Resources PLC Thursday said Auroch Minerals has received shareholder approval for its sale of the Manica gold project in Mozambique to Xtract.
Completion of the transaction now remains subject to approvals under the Mozambique Mining Act as well as other applicable laws.
"We are pleased to have received approval from Auroch shareholders and look forward to the relevant approvals being granted by the Mozambican mining authorities. We continue to advance negotiations with regard to the project finance as part of the final completion of this exciting acquisition," Chief Executive Jan Nelson said in a statement.
Xtract is buying the Manica gold project from Auroch for USD7.0 million in cash, with USD2.0 million to be paid three months after completion and to be settled via project finance, and a further USD1.0 million to be retained by Xtract to cover any tax liabilities on the capital gain due on the disposal of the asset.
Xtract will issue Auroch 1.03 billion shares to the value of USD4.0 million, giving the share a value of around 0.39 pence per share. Shares in Xtract were trading up 4.3% at 0.245 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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