British company Xtract Resources has issued shares to partially finance the acquisition of a gold mining license in Manica province, Mozambique, the company said in a statement issued on Monday.
This issue of almost 1.5 million shares generated a cash inflow of 4.4 million pounds, which will be used in the acquisition of 100 percent of the “Manica Gold” mining license from Auroch Minerals NL, which is listed on the Sydney Stock Exchange.
The total cost of the license is US$12.5 million to be paid with a cash payment in the amount of US$4.5 million dollars, the delivery of shares valued at US$6.5 million and the assumption of US$1.5 million in outstanding debts.
Xtract Resources, a 50-percent subsidiary of the Cambrian Mining Plc group, also said that a preliminary study conducted by Auroch Minerals showed the deposit called “Fair Bride” has an annual gold production capacity worth US$55 million.