19th Apr 2021 13:25
(Alliance News) - Xtract Resources PLC on Monday said it has raised GBP5.5 million to fund drilling at its Bushranger copper-gold project in Australia.
The miner with projects in Mozambique and Zambia said it issued 98.2 million shares at 5.6 pence each, a discount of about 9% to the closing price on Friday of 6.14p. Shares in Xtract were down 8.8% at 5.65p in London on Monday, giving a market capitalisation of GBP42.2 million.
The proceeds will be used to fund the next stage of exploration development on the Bushranger copper-gold exploration project in New South Wales, Australia. Phase one drilling was recently completed producing "very good results" and indicating a "considerably larger mineralised system than previously envisaged", the company said. Phase two drilling is expected to begin in July.
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.
"This fund raise has been implemented on the back of the excellent results of the phase one drilling programme at Bushranger," said Executive Chair Colin Bird.
"The company's intent is to accelerate exploration activities with an objective to target the 2 million tonnes of contained copper resource necessary to trigger a major company 80% buyout option.
"At the moment there are a large number of active exploration projects in Australia and we are keen to contractually engage our chosen drilling company and additional geologists of a calibre suitable for our proposed programme."
By Will Paige; [email protected]
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