Xtract Resources plc Enhanced terms Manica Western Alluvial Concession (6281Y)
December 07 2017 - 2:00AM
UK Regulatory
TIDMXTR
RNS Number : 6281Y
Xtract Resources plc
07 December 2017
For immediate release
7 December 2017
Xtract Resources Plc
("Xtract" or the "Company")
Xtract announces significantly enhanced terms for the western
portion of the Manica alluvial concession
The Board of Xtract Resources Plc ("Xtract" or the "Company") is
pleased to announce that the Company's wholly-owned Mozambican
subsidiary, Explorator Limitada ("Explorator") has negotiated
significantly enhanced terms for the western portion of the
alluvial concession under the existing Mining Contractor agreement
dated 19 June 2017 ("June Mining Contractor Agreement" or "June
Agreement") with Omnia Mining Ltd and Moz Gold Group Limitida
("Contract Miners") for the exploitation of alluvial gold deposits
at its Manica mining concession in Mozambique.
Highlights
-- Addendum to the June Mining Contract Agreement agreed between
the Company and the Contract Miners
-- Western mining area to be divided into two blocks ("M" blocks and "O" blocks)
-- Moz Gold Group Limitada ("Moz") appointed on an exclusive
basis to conduct alluvial mining and process on the M blocks
-- Omnia Mining Limited ("Omnia") has agreed to enter into a new agreement for the O blocks
Colin Bird, Executive Chairman said:
"The size of the project is such that the division of the
western half of the alluvial project was agreed to in the best
interest of all parties, especially on the basis that Omnia has a
significant alluvial plant some 3km west of the Manica Concession
that has large capacity and is currently under-utilised. The
amended June Agreement is expected to enable a significant increase
in production from the two plants which will have the effect in
increasing revenue whilst reducing operating risk."
Addendum to the June Mining Contractor Agreement
Pursuant to the Addendum to the June Mining Contractor
Agreement, Explorator has appointed Moz Group Limitada on an
exclusive basis to conduct alluvial mining on the Permitted Area
(the "M" Blocks) and to process the mined ore for the recovery of
Gold.
Omnia Mining Limited will cancel all their rights and benefits
under the June Mining and Processing Agreement and will enter into
a new agreement with the Company for all the "O" blocks on the
Permitted Area.
Omnia Mining Limited has agreed to sign a new agreement with the
Company within 60 days and will be free of any claims and
responsibilities pursuant to the June Mining and Processing
Agreement.
Further details are available from the Company's website which
details the company's project portfolio as well as a copy of this
announcement: www.xtractresources.com
This announcement contains inside information for the purposes
of Article 7 of EU Regulation No. 596/2014 on market abuse.
Enquiries:
Xtract Resources Colin Bird, Executive +44 (0)20 3416
Plc Chairman 6471
Michael Cornish
Roland Cornish +44 (0)207628
Beaumont Cornish Felicity Geidt 3369
Email: corpfin@b-cornish.co.uk
+44 (0)207 382
Beaufort Securities Jon Belliss 8300
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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