Exco Resources receives $600,000 cash boost after employee options exercised Monday, September 05, 2011 by John Phillips
Exco Resources (ASX: EXS) has received a cash boost to fund the company's copper projects in north-west Queensland, after the exercise of employee options.
In total 1.5 million $0.40 options were exercised, with Exco to receive $600,000.
The new Exco
In the June quarter of 2011 Exco completed the sale of the Cloncurry Copper Project in north-west Queensland to Xstrata (LON: XTA) for $175 million
Following approval from shareholders on 9th June 2011, the remaining conditions precedent were satisfied and the final formalities for the sale and funds transfer were completed on 30th June 2011.
This allowed Exco at the end of financial year 2011 to be in the enviable position of holding a $224.5 million cash balance - which equates (pre tax obligations) to around $0.64 per share, fully diluted.
Post the sale of the project, Exco's focus will be to add further value to the company's assets, with the board having already approved an initial exploration program of up to $10 million for the company's remaining tenements in the Cloncurry, Hazel Creek, and Soldiers Cap project areas.
Exploration activity has already kicked off at a number of priority targets.
Ends.
EXS Price at posting:
62.0¢ Sentiment: None Disclosure: Held
