The placing shares represent 17.9% of the current issued ordinary share capital of Xtract.

The net proceeds will be used by the company to fund the further development of its exploration and development projects in Australia and in Zambia and provide additional working capital.

Executive chairperson Colin Bird explains that the company elected to raise the money based on the very pleasing drilling of the first hole in the Phase 1 diamond drilling programme at the Racecourse mineral resource on the Bushranger copper/gold exploration project, in New South Wales, Australia.

The drilling results demonstrated a significant mineralised plunge in excess of Xtract’s expectations, requiring more extensive strike drilling to prove up width and the tonnage.

The drilling programme will be important to identify the copper grades, as well as establish gold grades on the various horizons.

The placing funds will also assist in fast-tracking the Eureka project, in Zambia, and drilling is expected to start there within the coming weeks.

Addison Mining Services has provided a provisional openpit profile for the Eureka project and the shape grade extraction plan will be finally determined by the drilling.