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Xtract updates on Manica project and Chepica gold Mine in Mozambique

Xtract Resources said purchasers of the Manica gold project in Mozambique had not yet made an initial payment.

It and Nexus Capital Ltd and Mineral Technologies International Ltd were in talks over the structure of the deal, which might result in further revisions to terms.

The talks might also result in amendments to Xtract’s existing JV agreement with MTI to mine the alluvial gold deposit at Manica, to ensure that all parties are able to focus resources on their principal objectives at Manica.

The Company also announced on 20 July 2016 that it had reached agreement with Auroch Minerals NL (“Auroch”) that the remaining $2.5m due to Auroch, pursuant to the Company’s acquisition of Manica in June 2015, would be settled in full by a payment of $750,000 to Auroch on 20 July 2016 and a final payment of US$1.75 million on 12 August 2016, once the Initial Payment had been received by the Company.

The Company confirms that is has paid Auroch $750,000 and has today made a further payment of $100,000 to Auroch. The parties are in discussions with regards to the final settlement of US$1.65 million.

The review of the Bankable Feasibility Study (“BFS”) at Manica is continuing and is now expected to be completed in September 2016. The Company is currently in discussions with the Purchasers regarding an extension to the deadline for completion of the BFS.

Chepica Update

At Chepica, the refurbishment of the crushing plant and construction of a new floatation plant have both commenced and these activities are progressing on schedule. The Company has made an initial payment of $150,000 to the optionholder pursuant to the outstanding options payments at Chepica and discussions are on-going regarding payment of the balance of $3.5 million due to the optionholder. A further update will be provided in due course.

Source: Interactive Investor

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