Xtract Resources, a company listed in London that has acquired a gold mine in Manica, Mozambique, from Australia’s Auroch Minerals, said the project could provide an EBITDA income of US$245 million over 12 years.

The company, issuing an update on the Manica project, also reported that the mine over 12 years of useful life should provide a profit of US$70 million, 20 million more than in the previous evaluation.

These figures consider a price per ounce of gold of US$1250 and commercial exploration of the Manica mine is expected to begin in the fourth quarter of 2017.

The company warned shareholders that these values, among others, are based on internal estimates and had not been verified by any independent entity, and may be subject to alteration as the definitive feasibility study is being performed.

Xtract Resources paid about US$11 million to Auroch Minerals for the mine, both in shares and in cash, assumed the payment of capital gains tax to the Mozambican Tax Authority in the amount of US$700,000 and committed to paying a 6 percent tax on revenues to the Mozambican treasury.

The acquisition of 100 percent of the Manica gold mine was formally approved by the government of Mozambique some days ago, according to a statement released by Xtract Resources on 1 March.

Source: MacauHub