Xtract Resources intends to raise £220,000 for general working capital

Xtract Resources intends to raise £220,000, before expenses, in a placing of about 1.3bn shares priced at 0.0165p each. Funds would go to general working capital.

Chairman Colin Bird and a company associated with him would participate in the placing -- alongside private and institutional investors -- for about 393.9m shares, taking his total to 483.6m.

Xtract would issue 666.67m warrants to placees on a one-for-two basis, exercisable in whole or in part at 0.02p until 21 December, 2017. As such, Bird would hold 196.97m placing warrants.

In addition, African Pioneer, in which Bird is a director and 9.05% shareholder, intended to subscribe for 121.2m placing shares.

At about 11:26 GMT, shares in AIM-quoted Xtract were flat at 0.2p each.