Xtract has now withdrawn funding from its South American operation to focus on the Manica gold project in Mozambique
Xtract Resources PLC (LON:XTR) has cut corporate overheads from £1.61 mln per year to just £650,000, following the appointment of Colin Bird as executive chairman.
That development ties in with the cessation of what the company called “severe financial haemorrhaging” from its support of mining at the Chepica copper project in Chile, which has now been withdrawn.
All told, Xtract’s finances are gradually being put in order, although there remain outstanding a loan and what’s known as a standby equity distribution agreement (SEDA) with YA Global, otherwise known as Yorkville.
These have now been secured against Xtract’s Manica gold project in Mozambique, which itself remains subject to ongoing negotiations regarding a bid for the project which came in in 2015.
Xtract has now appointed mining consultants Minxcon to complete open pit optimisation modelling at Manica. Meanwhile, the social element of the environmental impact study has also commenced.
“Our focus now is on the Manica mine to determine the capital expenditure required against the optimum technical plan and therefore restore certainty to the Company,” said Bird.
Source: ProActive Investors