South Perth-based mining explorer Extract Resources Ltd will raise $15 million through a placement to American and Canadian investors to fund drilling programs on the company's Namibian Uranium interests.
The full text of a company announcement is pasted below
Extract Resources Limited (ASX:EXT) ("Extract" or "the Company") is pleased to announce that it has entered into a conditional agreement with a syndicate of agents led by Haywood Securities Inc. and including Paradigm Capital Inc. both of Toronto, Canada (collectively, the "Agents") to place up to a total of 18,750,000 new fully paid ordinary shares at a placing price of A$0.80 (on a post 1:10 consolidation basis) to raise up to A$15.0 million (before expenses).
For every 2 new shares issued, a free option exercisable at A$1.00 on or before 24 months from the date of issue of the shares will apply.
As previously announced, a General Meeting is to be held on 14 March 2007 at which Extract is seeking approval from its shareholders inter alia for a 1:10 consolidation of its issued share capital.
This Capital Raising when closed will satisfy one of the major conditions pursuant to the Heads of Agreement with Kalahari Minerals Plc regarding the consolidation of common Namibian uranium interests as announced on 21 December 2006.
The Capital Raising is being made principally to substantial North American and European institutional investors. The introduction of these investors to the Company's share register at this time is expected to facilitate interest in Extract ahead of a planned dual listing of the Company on the Toronto Stock Exchange later in 2007 or early 2008.
The primary use of the funds from the financing (which is scheduled to close later this month) is to fund the extensive drilling and evaluation programs planned for 2007 on the Company's Namibian uranium interests and for general corporate purposes.
