https://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Fri, 16 Nov 2018 13:24:26 +0000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Xtract Resources reaches “equitable agreement” with Nexus over Manica mining deal ]]> https://www.proactiveinvestors.co.uk/companies/news/208122/xtract-resources-reaches-equitable-agreement-with-nexus-over-manica-mining-deal-208122.html Xtract Resources PLC (LON:XTR) said it has agreed to revise the terms of its collaboration agreement with Nexus Capital Limited for the mining of alluvial gold deposits at its Manica concession in Mozambique.

The AIM-listed miner said on Tuesday that amendments made to an agreement made between the parties in June 2017 would create a new “equitable agreement".

READ: Xtract Resources reports 6.35% quarter-on-quarter increase in gold production at Manica Concession

Xtract announced in February 2017 that it had sealed a deal with Hong Kong-based Nexus to develop the alluvial gold interest at Manica together through the appointment of third-party contract miners, who would have the exclusive right to mine alluvial deposits on specified areas of the concession.

The terms of the agreement have been revised several times since. However, Xtract said the new agreement would help ensure that net gold production is shared equally between the two companies and that all entry fees received from the contract miners after 31 May 2018 are divided equally between the pair.

Xtract also agreed a settlement of US$76,000 with Nexus for fees accrued between 1 January 2018 and 31 May 2018.

Xtract said the new agreement provides it with more favourable terms and potential additional income with minimal operating risk.

"The new agreement is the result of prolonged negotiations between Nexus and Xtract targeted towards an equitable agreement which reflects concession ownership and our responsibilities,” said Xtract CEO Colin Bird.

“This agreement has removed key aspects of negative control by Nexus and remains in the general interest of both parties. I am very pleased that agreement has been reached with Nexus and now look forward to working to increase the production of the Manica alluvials by revising the current contracting arrangements,” he added.

Xtract Resources shares were 1.5% up at 0.68p in late morning trade.

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Tue, 30 Oct 2018 11:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208122/xtract-resources-reaches-equitable-agreement-with-nexus-over-manica-mining-deal-208122.html
<![CDATA[RNS press release - Alluvial Collaboration Agreement terms amended ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20181030110511_13847657/ Tue, 30 Oct 2018 11:05:11 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20181030110511_13847657/ <![CDATA[News - Xtract Resources reports 6.35% quarter-on-quarter increase in gold production at Manica Concession ]]> https://www.proactiveinvestors.co.uk/companies/news/207846/xtract-resources-reports-635-quarter-on-quarter-increase-in-gold-production-at-manica-concession-207846.html Xtract Resources PLC (LON:XTR) has reported a 6.35% quarter-on-quarter increase in alluvial mining contractor gold production at the Manica Concession in Mozambique for the three months to 30 September 2018.

The AIM All-Share-listed firm said total alluvial mining contractor gold production at Manica in the period was 56.34Kg, equivalent to approximately 1,811 ounces.

READ: Xtract Resources is accelerating consolidation of the Manica area

The group added that total production attributable to its Explorator business - including under the Nexus collaboration agreement – was 14.09Kg, equivalent to approximately 453 ounces.

It said combined attributable revenue to Explorator from gold sales for the period amounted to US$242,000.

Colin Bird, Xtract’s executive chairman said: "The production results continue to show improvement and the operation has remained self-funding since production commenced.”

He added: “We continue to discuss with our collaboration partners and contractors routes to improved performance and distributable income.

“The high topography alluvials continue to be investigated for higher quantities of gold in the gravel. The cost of overburden removal requires high in-situ gold values.

“The hard rock methodology is likely to be incremental, in that we commence in hard rock areas where gold can be separated by gravity methods. Thereafter installing a leaching capability and finally the production of a floating concentrate.”

Bird concluded: “Discussions are progressing well with our partners and we will update the market shortly on our more definitive plans."

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Thu, 25 Oct 2018 12:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207846/xtract-resources-reports-635-quarter-on-quarter-increase-in-gold-production-at-manica-concession-207846.html
<![CDATA[RNS press release - Manica Concession Alluvial Gold Quarterly Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20181025110454_13842507/ Thu, 25 Oct 2018 11:04:54 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20181025110454_13842507/ <![CDATA[News - Xtract Resources is accelerating consolidation of the Manica area ]]> https://www.proactiveinvestors.co.uk/companies/news/205941/xtract-resources-is-accelerating-consolidation-of-the-manica-area-205941.html Xtract Resources PLC (LON:XTR) said in its half-year report the alluvial mining operations at its Manica concession remained cash positive during the period.

Total alluvial production amounted to 1,200 ounces (oz) in the first quarter and 1,703 oz in the second quarter.

Progress continues to be made with monthly performance, the company added, as it posted a loss before tax of £408,000 on revenue of £460,000, compared to a loss the year before of £642,000 on zero revenues.

READ Xtract Resources updates on Manica collaboration agreement with Omnia Mining​

Xtract ended the first half of 2018 with cash of £1.01mln, down from £1.66mln at the end of 2017.

The contract with Moz Gold was terminated during the Period and the company is now in the process of taking possession of Moz Gold's plant over which it has security. Xtract is looking at a number of opportunities to employ this processing plant within the concession or elsewhere; although the processing plant is unsuitable for the recovery of fine gold at Manica, it is a substantial plant that will undoubtedly return value to the company or any acquirer of the plant, declared Colin Bird, the executive chairman of Xtract.

“The work to consolidate the Manica area is accelerating and the possibility of including Fair Bride in the agreement is being considered. We expect that the fourth quarter of 2018 we will prepare a three-year operation plan together with costings,” Bird said.

“As always, the company is active in seeking out other opportunities which may diversify commodity risk, and at time when we are debt free which will help to add further potential for significant shareholder value growth,” he added.

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Fri, 28 Sep 2018 07:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205941/xtract-resources-is-accelerating-consolidation-of-the-manica-area-205941.html
<![CDATA[RNS press release - Half-year Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180928070003_13807945/ Fri, 28 Sep 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180928070003_13807945/ <![CDATA[News - Xtract Resources updates on Manica collaboration agreement with Omnia Mining ]]> https://www.proactiveinvestors.co.uk/companies/news/203760/xtract-resources-updates-on-manica-collaboration-agreement-with-omnia-mining-203760.html Xtract Resources PLC (LON:XTR) has updated on its hard rock collaboration agreement with Omnia Mining Ltd at Xtract’s Manica mining concession in Mozambique.

The AIM-listed miner said that to date 12 potential mining sites had been identified within 15 kilometres of Omnia’s plant, with eight of the potential mining sites already within the existing license areas.

READ: Xtract reports increase in quarterly gold production at Manica project in Mozambique

The firm added that a newly discovered quartz vein/alteration system, called the André Zone, had been channel sampled in trenches with gold grades ranging from 1.1 metres at 0.89 grams per tonne (g/t) and 0.5m at 20.8g/t.

The zone will be further explored through the opening of an underground adit, Xtract said, adding that Omnia has completed the construction of its 40 thousand tonnes (kt) per month free gold processing plant with commissioning planned for November 2018.

Xtract signed the agreement with Omnia in February to target all hard rock occurrences at the Manica mining concession with the exception of the Fair Bride project, which remains under the sole control of Xtract.

Hard rock occurrences that meet the agreed target hurdle rate of return of 25% will be mined and the benefits shared on a 50:50 basis.

Colin Bird, executive chairman of Xtract, said the companies were currently carrying out “financial and technical exercises” to decide whether to work on the various mineral veins at the site sequentially or to “install a total capability plant suitable for all ore types”, adding that the latter option could result in material from the Fair Bride project being processed through Omnia’s plant subject to a final agreement.

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Wed, 29 Aug 2018 07:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203760/xtract-resources-updates-on-manica-collaboration-agreement-with-omnia-mining-203760.html
<![CDATA[RNS press release - Hard Rock Collaboration Agreement Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180829070005_13770544/ Wed, 29 Aug 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180829070005_13770544/ <![CDATA[News - Xtract Resources encouraged by gold production trend at Manica in Mozambique ]]> https://www.proactiveinvestors.co.uk/companies/news/200943/xtract-resources-encouraged-by-gold-production-trend-at-manica-in-mozambique-200943.html Xtract Resources PLC (LON:XTR) is seeing output from the Manica mine in Mozambique start to pick up.

Sino Minerals, a contract miner working on the project, produced a total of 1,703 ounces of gold in April, May and June – up 42% from the previous quarter (1,200 oz).

READ: Xtract Resources seeks new contractor for western half of Manica concession

Xtract’s subsidiary Explorator receives 25% of all the gold produced, meaning its share this time was around 426oz (Q1:297oz).

But problems processing the gold meant only 283 oz of Explorator’s portion of the precious metal was sold, bringing in US$291,000 (Q1: US$333,000).

As Xtract owns a 40% stake in Explorator, its take-home pay was US$116,400 (Q1: US$133,200).

“These results demonstrate an increasing trend in quarterly production,” said Xtract’s executive chairman Colin Bird.

“The first quarter was adversely affected by the rainy season and difficult processing conditions in the West.

The second quarter was rid of the rains but was affected by difficult processing conditions due to fine gold and erratic occurrence.

 “Since alluvial production commenced in 2017, Explorator has been self-funding and we are encouraged by production levels being maintained by one contractor.”

Bird believes eventually it can earn around US$300,000 per month from the gold mined by contractors, money it will use to develop a hard rock mining operation at the prospect.

North and South

Sino Minerals has exclusive mining rights to the eastern half of the Manica concession but mining elsewhere has been hampered by issues with the contractors for the alluvial deposits.

Moz Gold stopped work at the end of June and a new contractor will be appointed shortly, Bird said.

Other ways to boost production are also being looked at.

“We are seriously considering dividing the concession into North-South halves [rather than east-west]since the river beds and terraces require different processing plant configuration.”

Hard Rock collaboration

Meanwhile, the hard rock collaboration agreement with Omnia Mining has sent channel samples and rock chips for assay sampling.

How much it will cost to upgrade the current plant to feed all types of oxidation from oxides to sulphides is also being investigated.

“We are currently in the process of identifying more hard rock mining positions irrespective of whether the crop is oxide transition or sulphide and concurrently evaluating the cost and time of operating the plant to treat all gold mineralisation types," said Bird.

“The co-ownership of an all-purpose plant will position the Collaboration Agreement very strongly in the Manica area."

Xtract shares eased to 1.22p.

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Tue, 17 Jul 2018 09:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200943/xtract-resources-encouraged-by-gold-production-trend-at-manica-in-mozambique-200943.html
<![CDATA[News - Xtract reports increase in quarterly gold production at Manica project in Mozambique ]]> https://www.proactiveinvestors.co.uk/companies/news/200860/xtract-reports-increase-in-quarterly-gold-production-at-manica-project-in-mozambique-200860.html Xtract Resources PLC (LON:XTR) has reported a rise in second-quarter gold production from the Manica project in Mozambique.

Sino Minerals, a contract miner working on the project, produced a total of 1,703 ounces of gold in April, May and June – up 42% from the previous quarter (1,200 oz).

READ: Xtract seeks new contractor for western half of Manica concession

Xtract’s subsidiary Explorator receives 25% of all the gold produced, meaning its share this time was around 426 oz (Q1: 297 oz).

But problems processing the gold meant only 283 oz of Explorator’s portion of the precious metal was sold, bringing in US$291,000 (Q1: US$333,000).

As Xtract owns a 40% stake in Explorator, its take-home pay was US$116,400 (Q1: US$133,200).

“These results demonstrate an increasing trend in quarterly production,” said Xtract’s executive chairman Colin Bird.

“The 1st quarter was adversely affected by the rainy season and difficult processing conditions in the West. The 2nd quarter was rid of the rains but was affected by difficult processing conditions as a result of fine gold and erratic gold occurrence.

He added: “We have taken the decision to employ different contractors for the terraces and adjacent to the river alluvials and the appointment is expected to be announced shortly.

“Since alluvial production commenced in 2017, Explorator has been self-funding and we are encouraged by production levels being maintained by one contractor.”

Xtract shares fell 6.9% in afternoon trading to 1.21p.

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Mon, 16 Jul 2018 13:03:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200860/xtract-reports-increase-in-quarterly-gold-production-at-manica-project-in-mozambique-200860.html
<![CDATA[RNS press release - Manica Concession Alluvial Gold Quarterly Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180716122147_13719271/ Mon, 16 Jul 2018 12:21:47 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180716122147_13719271/ <![CDATA[News - Xtract Resources seeks new contractor for western half of Manica concession ]]> https://www.proactiveinvestors.co.uk/companies/news/199488/xtract-resources-seeks-new-contractor-for-western-half-of-manica-concession-199488.html Xtract Resources PLC (LON:XTR) said its reviewing new contractor proposals for the western half of its Manica concession after the current contractor, Moz Gold, halted production.

The AIM-listed gold miner said mining results for the western half of the concession had been unsatisfactory primarily due to the nature of the gold, being fine gold and a plant not fit for purpose for recovering this gold, and as such Moz Gold had halted production.

READ: Xtract Resources updates on operations at Manica concession

It added that Moz Gold’s contribution to the overall production had not been material, with most of the alluvial production contributed by Sino Minerals, which has exclusive mining rights to the eastern half of the Manica concession.

Xtract added that the convertible loan agreement entered with Moz Gold in December 2017, provides Xtract with security over the processing plant and test work needs to be completed before the company decides either to utilise the plant for its own account or, alternatively, make it available to new contractors who would be responsible for all necessary modifications.

The firm also said that Moz Gold had made no payments in respect of previously announced historic performance penalties and accrued but unpaid run-of-mine payments and these remain due.

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Mon, 25 Jun 2018 11:26:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199488/xtract-resources-seeks-new-contractor-for-western-half-of-manica-concession-199488.html
<![CDATA[RNS press release - Results of AGM and Alluvial Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180625102037_13692109/ Mon, 25 Jun 2018 10:20:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180625102037_13692109/ <![CDATA[News - Xtract Resources updates on operations at Manica concession ]]> https://www.proactiveinvestors.co.uk/companies/news/198882/xtract-resources-updates-on-operations-at-manica-concession-198882.html Xtract Resources PLC (LON:XTR) has provided an update on operations at the Manica project in Mozambique.

The AIM-listed gold miner said in the update that there had been a substantial improvement in alluvial mining contractor gold production for the current quarter to date and ahead of the first quarter of 2018.

READ: Xtract Resources reports increase in quarterly gold sales from Manica project

The firm added that its hard rock collaboration agreement with Omnia Mining Ltd had uncovered concealed extensions to hard rock exposure, with channel samples and rock chips being sent away for assay sampling.

Xtract also said that the parties were investigating the cost of upgrading the current plant to feed all types of oxidation from oxides to sulphides.

The group was also reviewing further contractor proposals for the western half of the Manica concession.

Colin Bird, executive chairman, said: "The continued overall improvement in alluvial gold production from the prior quarter shows pleasing progress and we hope to build on this and look forward to reporting our Q2 production in mid-July. We are seriously considering dividing the concession into North-South halves as oppose to East-West since the river beds and terraces require different processing plant configuration.

He added: “We are currently in the process of identifying more hard rock mining positions irrespective of whether the crop is oxide transition or sulphide and concurrently evaluating the cost and time of operating the plant to treat all gold mineralisation types. The co-ownership of an all-purpose plant will position the Collaboration Agreement very strongly in the Manica area."

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Thu, 14 Jun 2018 11:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198882/xtract-resources-updates-on-operations-at-manica-concession-198882.html
<![CDATA[RNS press release - Manica Gold Concession Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180614110802_13679845/ Thu, 14 Jun 2018 11:08:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180614110802_13679845/ <![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180530134417_13660138/ Wed, 30 May 2018 13:44:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180530134417_13660138/ <![CDATA[News - Xtract Resources reports increase in quarterly gold sales from Manica project ]]> https://www.proactiveinvestors.co.uk/companies/news/195969/xtract-resources-reports-increase-in-quarterly-gold-sales-from-manica-project-195969.html Xtract Resources PLC (LON:XTR) reported an increase in first quarter gold sales from the Manica project in Mozambique despite production taking a hit from heavy rainfall.

Xtract’s share of gold revenue and costs from the project is 40% under a collaboration agreement between its subsidiary Explorator and Nexus Capital Limited signed last June.

The company said the total combined attributable income from gold sales rose to US$333,000 in the three months ended March 31, compared to US$218,000 the previous quarter.

READ: Xtract Resources strikes new deal with contractor for Mozambique gold operation

Its share of attributable income from gold sales rose to US$133,200 from US$87,200.

Explorator’s share of gold sold increased to 314 ounces from 210 ounces even as its share of gold production fell to 297 ounces from 319 ounces.

Total contractor alluvial gold production dropped to 1,200 ounces from 1,279 ounces.

"Alluvial production in the first quarter was disappointing, although real progress was made, which was frustrated by prolonged heavy rains,” said Colin Bird, chairman of Xtract.

“One alluvial mining contractor was partially able to combat the effects of rain, whilst the other alluvial mining operator (using traditional alluvial processing methods) was unable to produce for a significant part of the quarter.

“We continue to address key areas of performance and we expect improved results month-on-month.”

Bird added that Xtract is adapting its operational approach to the alluvials, based on what it has learned over the past six months.

Xtract is also considering different mining methods for the terraces, which require deeper mining and often produce large nuggets that can mitigate lower average grades, he said.

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Fri, 27 Apr 2018 13:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195969/xtract-resources-reports-increase-in-quarterly-gold-sales-from-manica-project-195969.html
<![CDATA[RNS press release - Manica Concession Alluvial Gold Quarterly Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180427132127_13622112/ Fri, 27 Apr 2018 13:21:27 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180427132127_13622112/ <![CDATA[News - Investors patiently awaiting further flows from Xtract Resources' Manica project in Mozambique ]]> https://www.proactiveinvestors.co.uk/companies/news/195277/investors-patiently-awaiting-further-flows-from-xtract-resources-manica-project-in-mozambique-195277.html Investors in Xtract Resources PLC (LON:XTR) have been patiently awaiting further news on the miner’s key Manica project in Mozambique following the first pouring of gold announced last December.

Sino Minerals, a contract miner working on the Manica project, produced a total of 6.287 kg of tax-paid gold in October and November, with an approximate gross value of US$230,000, and a net value to Xtract of approximately US$92,000.

READ: Xtract sees first gold poured at Manica

Back in September, Xtract’s chief executive Colin Bird had estimated that the group should be earning around US$300,000 per month by the year-end from the gold mined by contractors, cash flow which he said would put the company in very good stead for its ultimate plans to go mining the hard rock at Manica.

In an update at the end of January, Xtract said its combined attributable contractor income for the three months to 31 December 2017 had amounted to US$801,000, meaning the AIM-quoted company’s share was US$320,000 (40% of the contractor income).

The company noted that at the period end, some 2.828 kilograms of gold was on account but not yet sold.

Bird said then that: “The last quarter represented the commencement of operations with its attendant set-backs and problems.”.

READ: Xtract Resources says contracted gold operations are “progressing favourably”

Bird added: “The operations are progressing favourably, and we expect first quarter results for the period ending 31 March 2018 to show an overall improvement in productivity and attributable income to Xtract.”

Last month, Xtract announced that it had secured new terms with Moz Gold Group, which is exploiting the M Block deposits at Manica, which will see the UK firm entitled to a percentage of the mined gold - on a sliding scale tied to volume.

Under the deal, Moz Gold will deliver at least 2.25 kilograms of gold for March, and subsequently it will get 3 kilograms for each calendar month thereafter.

The initial contract period runs for 10 years or upon depletion of the alluvial deposits, depending which comes first.

Xtract’s CEO said: “The change in the new agreement to a gold split should enable easier and more efficient monitoring of the operation, along with and bi-weekly payment increasing cash flow.”

READ: Xtract Resources to make a US$700,000 strategic convertible loan notes investment in Moz Gold

Xtract made a US$700,000 strategic investment in Moz Gold in December, initially via an initial convertible loan of US$400,000, with the loan and interest at 30% per annum repayable over five months.

Xtract has the right to convert the loan at any time into a 25% equity interest in Moz Gold. The firm said it has also agreed to provide a further US$300,000 convertible loan to Moz with the right to convert that for a further 10% interest in Moz Gold

A month earlier, Xtract had also agreed a new collaboration with its other contractor on Manica, Omnia Mining Ltd.

Omnia will use its processing plant to target all hard rock occurrences at Manica, apart from the Fair Bride project, which remains under the sole control and management of Xtract.

The plant is capable of processing 400,000 tonnes per year

READ: Xtract Resources extends partnership with Omnia Mining for Manica project

Xtract will carry out the initial investigation on potential targets while costs of further exploration work will be shared equally between the two companies.

The deal extended a previous collaboration between Xtract and Omnia to exploit alluvial gold deposits at Manica.

Xtract said the aim of the agreement is to convert hard rock exploration targets into a joint mining operation with Omnia.

The Fair Bride project will be developed separately by Xtract.

Placing dilution

Back in November, Xtract raised £1.7mln through a placing to pay off its debts and look at other opportunities in the area surrounding Manica.

The shares were issued at 2.85p each, and the placing saw the group’s shares in issue increase by 20%.

The firm said it had the opportunity to raise more but wanted to minimise dilution.

Since then Xtract shares have drifted lower, with the stock currently changing hands at 2.25p each.

As the gold flows from Manica, investors will be hoping that Xtract’s share price steps higher as well.

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Wed, 18 Apr 2018 14:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/195277/investors-patiently-awaiting-further-flows-from-xtract-resources-manica-project-in-mozambique-195277.html
<![CDATA[RNS press release - Appointment of Joint Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180315173155_13569095/ Thu, 15 Mar 2018 17:31:55 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180315173155_13569095/ <![CDATA[RNS press release - Appointment of Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180306161729_13557016/ Tue, 06 Mar 2018 16:17:29 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180306161729_13557016/ <![CDATA[News - Xtract Resources strikes new deal with contractor for Mozambique gold operation ]]> https://www.proactiveinvestors.co.uk/companies/news/192698/xtract-resources-strikes-new-deal-with-contractor-for-mozambique-gold-operation-192698.html Xtract Resources PLC (LON:XTR) has updated investors on its Mozambique alluvial gold mining operation, where it has secured new terms with a contractor.

Contractor Moz Gold Group is exploiting the M Block deposits, at the Manica mining concession, and it is anticipated that production volumes will increase – with the number of plants increasing to seven from three.

Under the new agreement, the Xtract subsidiary will be entitled to a percentage of the mined gold (on a sliding scale tied to volume).

Moz Gold will deliver at least 2.25 kilograms of gold for March, and subsequently it will get 3 kilograms for each calendar month thereafter.

The initial contract period runs for 10 years or upon depletion of the alluvial deposits, depending which comes first.

"The change in the new agreement to a gold split should enable easier and more efficient monitoring of the operation, along with and bi-weekly payment increasing cash flow,” said Colin Bird, executive chairman.

“Moz Gold have stripped a considerable amount of overburden and are expected now to increase their gold production.

He added: “The Manica alluvial operations are beginning to stabilise after recent heavy rains falls. The availability of processing plant and earth moving equipment should ensure significant and further increased production levels.

“The decrease in rain fall, together with plant build up should also facilitate increased production levels".

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Tue, 06 Mar 2018 14:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/192698/xtract-resources-strikes-new-deal-with-contractor-for-mozambique-gold-operation-192698.html
<![CDATA[RNS press release - Alluvial Mining Contractor new agreement & update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180306140651_13556807/ Tue, 06 Mar 2018 14:06:51 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180306140651_13556807/ <![CDATA[RNS press release - Change of Broker ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180302124023_13553079/ Fri, 02 Mar 2018 12:40:23 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180302124023_13553079/ <![CDATA[News - Xtract Resources extends partnership with Omnia Mining for Manica project ]]> https://www.proactiveinvestors.co.uk/companies/news/191839/xtract-resources-extends-partnership-with-omnia-mining-for-manica-project-191839.html Xtract Resources PLC (LON:XTR) has agreed a new collaboration with Omnia Mining Ltd for the exploitation of hard rock gold deposits at the Manica mining concession in Mozambique.

Omnia will use its processing plant to target all hard rock occurrences at Manica, apart from the Fair Bride project, which remains under the sole control and management of Xtract.

READ: Xtract Resources says contracted gold operations are “progressing favourably”

The plant is capable of processing 400,000 tonnes per year.

Xtract will carry out the initial investigation on potential targets while costs of further exploration work will be shared equally between the two companies.

Hard rock occurrences that meet the agreed target hurdle rate of return of 25% will be mined and the benefits shared on a 50:50 basis.

“Within the partners concession areas, there exists numerous hard rock occurrences most of which have undergone limited, superficial or no exploration,” said Xtract executive chairman Colin Bird.

“The agreement provides Omnia with the company's mining and processing expertise and gives the company the opportunity for a fast track hard rock operation.”

The deal extends a collaboration agreed earlier this month between Xtract and Omnia to exploit alluvial gold deposits at Manica.

READ: Xtract Resources hires new mining contractor for Manica alluvial project

Xtract said the aim of the agreement is to convert hard rock exploration targets into a joint mining operation with Omnia.

The Fair Bride project will be developed separately by Xtract. 

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Mon, 19 Feb 2018 10:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191839/xtract-resources-extends-partnership-with-omnia-mining-for-manica-project-191839.html
<![CDATA[RNS press release - Manica Hard Rock Collaboration Agreement ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180219102004_13537813/ Mon, 19 Feb 2018 10:20:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180219102004_13537813/ <![CDATA[News - Xtract Resources hires new mining contractor for Manica alluvial project ]]> https://www.proactiveinvestors.co.uk/companies/news/191403/xtract-resources-hires-new-mining-contractor-for-manica-alluvial-project-191403.html Xtract Resources PLC (LON:XTR) told investors that its Mozambique subsidiary Explorator Limitada has entered into a new mining contractor agreement with Omnia Mining Ltd for an alluvial gold operation at the Manica project.

Omnia Mining will produce gold from the O block, in the western portion of the Manica area. The agreement will see Explorator receive monthly payments based on the run-of-mine performance.

The contractor will begin the building of dams and processing from February 12, and it is committed to have a fully operational plant (with a minimum throughput of 100 tonnes per hour) by no later than May 15.

It is expected that the agreement will run for a maximum of 10 years, or sooner if the alluvials are depleted.

"The agreement with Omnia allows the O block of the western area to be fed into Omnia's sophisticated alluvial processing plant which is situated adjacent thereto,” said Colin Bird, Xtract executive chairman.

“The overall effect will be to move more alluvials and thus shorten the time to about 6 years for total depletion of the western gravels.

“We continue to make to good progress in exploring further opportunities in the Manica area."

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Thu, 08 Feb 2018 14:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191403/xtract-resources-hires-new-mining-contractor-for-manica-alluvial-project-191403.html
<![CDATA[RNS press release - Manica Gold Alluvial Mining Contractor Agreement ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180208140112_13526743/ Thu, 08 Feb 2018 14:01:12 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180208140112_13526743/ <![CDATA[News - Xtract Resources says contracted gold operations are “progressing favourably” ]]> https://www.proactiveinvestors.co.uk/companies/news/190623/xtract-resources-says-contracted-gold-operations-are-progressing-favourably-190623.html Xtract Resources PLC (LON:XTR) has given investors an update on its contracted alluvial mining operations at the Manica concession, in Mozambique, for the quarter ended December 31, a period in which the operation worked through some teething problems.

Chairman Colin Bird said: “The last quarter represented the commencement of operations with its attendant set-backs and problems.

“The contractors solved the issues with design modifications, extraction scheduling changes and increased equipment.

“The operations are progressing favourably, and we expect first quarter results for the period ending 31 March 2018 to show an overall improvement in productivity and attributable income to Xtract.”

In Thursday’s statement, Xtract said combined attributable contractor income for the period amounted to US$801,000, meaning the AIM-quoted company’s share was US$320,000 (40% of the contractor income).

The company noted that at the end the period, some 2.828 kilograms of gold was on account but not yet sold.

Xtract also highlighted that it continues to explore opportunities to work with other operators and review other concessions in the Manica and surrounding areas

“We have a clear mission on the opportunities presented in the district,” Bird said.

“We are highly encouraged by a positive start and industry interest in our Fair Bride hard rock project."

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Thu, 25 Jan 2018 10:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/190623/xtract-resources-says-contracted-gold-operations-are-progressing-favourably-190623.html
<![CDATA[RNS press release - Manica Concession Alluvial Gold Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180125102700_13509463/ Thu, 25 Jan 2018 10:27:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20180125102700_13509463/ <![CDATA[RNS press release - Directors Dealing, Issue of Equity ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171228152217_13479504/ Thu, 28 Dec 2017 15:22:17 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171228152217_13479504/ <![CDATA[News - Xtract Resources to make a US$700,000 strategic convertible loan notes investment in Moz Gold ]]> https://www.proactiveinvestors.co.uk/companies/news/188880/xtract-resources-to-make-a-us700000-strategic-convertible-loan-notes-investment-in-moz-gold-188880.html Xtract Resources PLC (LON:XTR) is to make a US$700,000 strategic investment in Moz Gold Limitada, the firm which currently operates the M Block in the Western mining area of its Manica mining concession in Mozambique.

The AIM listed firm said it is to make an initial convertible loan of US$400,000 to Moz Gold, with the loan and interest at 30% per annum to be repaid over 5 months. Xtract added that it has the right to convert the loan at any time into a 25% equity interest in Moz Gold.

READ: Xtract Resources expects “significant increase” in production at Manica after agreeing improved deal with contract miners

The firm said it has also agreed to provide a further US$300,000 convertible loan to Moz with the right to convert that for a further 10% interest in Moz Gold

The company noted that Moz Gold is now in commercial production on the Manica M Blocks, which are wholly-owned by Xtract’s Mozambican subsidiary, Explorator Limitada.

Colin Bird, Xtract’s executive chairman commented: "As owners of the Manica concession, Xtract consider it of shareholder benefit to take a bigger stake in gold production from the concession, since we consider the revenues will be long life and sustainable.”

He added: “This agreement should significantly enhance Xtract's earnings from alluvial activities well beyond initial expectations. All other components of area consolidation are proceeding satisfactorily, and I look forward to updating before year end or certainly early in the new year".

Xtract, which said it is funding the loan from its existing cash resources, saw its shares take on 2.7%, or 0.08p in late morning trading at 2.82p.

READ: Xtract sees first gold poured at Manica

Moz is a private company newly incorporated in Mozambique, and owned by private individuals, which was formed to mine the alluvial gold deposits in the Western area of the Manica concession under contract from Xtract, and it has no other operations.

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Fri, 15 Dec 2017 10:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/188880/xtract-resources-to-make-a-us700000-strategic-convertible-loan-notes-investment-in-moz-gold-188880.html
<![CDATA[RNS press release - Strategic investment in Manica alluvial operator ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171215093140_13467146/ Fri, 15 Dec 2017 09:31:40 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171215093140_13467146/ <![CDATA[Media files - Alastair Ford's Christmas pick of the African miners ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8506/alastair-ford-s-christmas-pick-of-the-african-miners-8506.html Thu, 07 Dec 2017 13:31:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8506/alastair-ford-s-christmas-pick-of-the-african-miners-8506.html <![CDATA[News - Xtract Resources expects “significant increase” in production at Manica after agreeing improved deal with contract miners ]]> https://www.proactiveinvestors.co.uk/companies/news/188427/xtract-resources-expects-significant-increase-in-production-at-manica-after-agreeing-improved-deal-with-contract-miners-188427.html Xtract Resources PLC’s (LON:XTR) Mozambican subsidiary has negotiated a “significantly enhanced” deal with the contract alluvial miners at the Manica gold project.

Explorator Limitada – wholly-owned by Xtract – agreed the original terms with Omnia Mining and Moz Gold back in June.

READ: Xtract sees first gold poured at Manica

The updated agreement will see the western mining area at Manica divided into two blocks – O and M.

Moz has been appointed on an exclusive basis to conduct alluvial mining and processing within the M block, while Omnia has entered into a new agreement for the O block.

‘Significant increase’ in production

"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,” said executive chairman Colin Bird.

“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.”

Shares jumped 7.8% to 3.12p early on Thursday.

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Thu, 07 Dec 2017 08:14:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/188427/xtract-resources-expects-significant-increase-in-production-at-manica-after-agreeing-improved-deal-with-contract-miners-188427.html
<![CDATA[RNS press release - Enhanced terms Manica Western Alluvial Concession ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171207070004_13456757/ Thu, 07 Dec 2017 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171207070004_13456757/ <![CDATA[News - Xtract sees first gold poured at Manica ]]> https://www.proactiveinvestors.co.uk/companies/news/188368/xtract-sees-first-gold-poured-at-manica-188368.html Sino Minerals, a contract miner working on the Manica gold project owned by Xtract Resources PLC (LON:XTR) produced a total of 6.287 kg of tax-paid gold in October and November.

This gold is now available for dispatch to the South African refinery, with 40% attributable to Xtract and 60% to Nexus Capital Limited under the Collaboration Agreement signed on 20 June, 2017.

The approximate gross value is US$230,000, while the value net to Xtract is approximately US$92,000.

"The period ended 30 November 2017 was a start-up period for our contractors resulting in stop-start operations and plant fixing,” said Xtract chairman Colin Bird.

“We are encouraged by this initial result and perceive further alluvial and hard rock opportunities emerging at the Manica site".

 

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Wed, 06 Dec 2017 13:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/188368/xtract-sees-first-gold-poured-at-manica-188368.html
<![CDATA[RNS press release - Manica Concession Alluvial Gold Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171206114319_13456011/ Wed, 06 Dec 2017 11:43:19 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171206114319_13456011/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171201135006_13451401/ Fri, 01 Dec 2017 13:50:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171201135006_13451401/ <![CDATA[News - Xtract Resources raises £1.7mln to build position around Manica in Mozambique ]]> https://www.proactiveinvestors.co.uk/companies/news/187206/xtract-resources-raises-17mln-to-build-position-around-manica-in-mozambique-187206.html Xtract Resources PLC (LON:XTR) has raised £1.7mln through a placing to pay off its debts and look at other opportunities in the area surrounding its Manica project in Mozambique.

The junior said it had the opportunity to raise more but wanted to minimise dilution.

READ: More production underway at Xtract’s Manica gold project in Mozambique

The shares were issued at 2.85p, an 8.5% discount to last night’s close, and will see the shares in issue increase by 20%.

Xtract added that alluvial mining was now underway on both sides of the Manica concession with first income expected from the west operation at the end of November.

The east operation delivered its first gold bars in October.

READ: Xtract surges after production starts on eastern half of its Manica concession

Colin Bird, chairman, said: "The placing was considered necessary to satisfy outstanding debt [£530,000] and remove the requirement for further convertible issues.“

The placing will give immediate access to funds to take full advantage of the potential within the Manica area which may include taking equity positions in operations and fast tracking the hard rock propositions, he added.

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Tue, 14 Nov 2017 07:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/187206/xtract-resources-raises-17mln-to-build-position-around-manica-in-mozambique-187206.html
<![CDATA[RNS press release - Equity Placing and Corporate Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171114070005_13430160/ Tue, 14 Nov 2017 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171114070005_13430160/ <![CDATA[RNS press release - Loan Note Conversion, Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171026104300_13410069/ Thu, 26 Oct 2017 10:43:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171026104300_13410069/ <![CDATA[RNS press release - Exercise of Warrants ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171017154248_13399756/ Tue, 17 Oct 2017 15:42:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171017154248_13399756/ <![CDATA[RNS press release - Loan Note Conversion, Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171016163018_13398240/ Mon, 16 Oct 2017 16:30:18 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171016163018_13398240/ <![CDATA[News - More production underway at Xtract’s Manica gold project in Mozambique ]]> https://www.proactiveinvestors.co.uk/companies/news/185508/more-production-underway-at-xtracts-manica-gold-project-in-mozambique-185508.html Omnia Mining, one of the contractors working the Manica mine in Mozambique owned by Xtract Resources PLC (LON:XTR) has now commenced production on the western half of the concession.

The alluvial collaboration agreement was concluded on 18 June 2017 and  provides for monthly payments to Xtract’s wholly-owned Mozambican subsidiary, Explorator Limitada, against monthly-run-of mine performance.

Omnia Mining commenced processing alluvial material through its plant on 11 October 2017.

At this stage, there are 40,000 tonnes of alluvials ready for processing and 30,000 tonnes exposed in pit.

First income is anticipated at the end of November 2017

“We look forward to a stable operation and rapid increase in hourly production to 400 tonnes per hour or more,” said Xtract executive chairman Colin Bird.

  

 

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Thu, 12 Oct 2017 11:56:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/185508/more-production-underway-at-xtracts-manica-gold-project-in-mozambique-185508.html
<![CDATA[RNS press release - Manica Alluvial Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171012112355_13394833/ Thu, 12 Oct 2017 11:23:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171012112355_13394833/ <![CDATA[News - Xtract surges after production starts on eastern half of its Manica concession ]]> https://www.proactiveinvestors.co.uk/companies/news/185260/xtract-surges-after-production-starts-on-eastern-half-of-its-manica-concession-185260.html Xtract Resources PLC (LON:XTR) shot up almost 20% after it announced production of first gold from sluice boxes has started at its Manica concession.

Contractor Sino Minerals started processing alluvials through their number 1 plant over the weekend.

The smelting of first gold is expected to start today or tomorrow.

READ Xtract expects cash flow to be generated at Manica this month, building up rapidly in October

"I am pleased to be able to report that on Saturday, 7 October 2017, Sino Minerals commenced commercial production on the eastern half of the Manica concession,” said chairman, Colin Bird.

“The company expects to be in receipt of its first gold dore bars by the end of the week. We look forward in further updating the market as production stabilises and optimises," he added.

The shares rose 0.375p to 2.75p.

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Mon, 09 Oct 2017 10:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/185260/xtract-surges-after-production-starts-on-eastern-half-of-its-manica-concession-185260.html
<![CDATA[RNS press release - Manica Alluvial Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171009102132_13390187/ Mon, 09 Oct 2017 10:21:32 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171009102132_13390187/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171004133730_13386019/ Wed, 04 Oct 2017 13:37:30 +0100 https://www.proactiveinvestors.co.uk/companies/rns/1106/LSE20171004133730_13386019/ <![CDATA[News - Xtract Resources "looking at a number of opportunities to enhance shareholder value outside Mozambique but within southern Africa” ]]> https://www.proactiveinvestors.co.uk/companies/news/184833/xtract-resources-looking-at-a-number-of-opportunities-to-enhance-shareholder-value-outside-mozambique-but-within-southern-africa-184833.html Xtract Resources PLC’s (AIM:XTR) executive chairman, Colin Bird has revealed that the gold exploration and development company is “looking at a number of opportunities to enhance shareholder value outside Mozambique but within southern Africa”.

In a statement accompanying the AIM-listed firm’s results for the six months ended 30 June, Bird added that “the generation of surplus cash to overhead will allow us to pursue additional growth opportunities."

Xtract’s interim numbers showed an increase in the group’s cash reserves to £0.54mln at the period end, up from £0.18mln at the end of 2016, with its net assets increasing to £8.36mln from £6.56mln.

READ: Xtract expects cashflow to be generated at Manica this month, building up rapidly in October

The firm raised £1.88mln via an equity placing during the first half, and garnered a further £1.3mln in another placing after the period end.

The group saw its net losses reduced to £0.64mln for the first half, down from £5.24mln at the same stage a year earlier, as its operating expenses decreased to £0.46mln from £1.25mln.

Bird said: “The Period under review was progressive on all fronts resulting in a company which has focus and a clear direction for the future.

“All our efforts were directed towards debt reduction, technical and financial evaluation of the Manica project and the reduction of overheads and corporate costs.”

He noted that Xtract has completed a second alluvial contract deal on the eastern part of its Manica licence area in Mozambique and signed an agreement with Sino Minerals Investment Company Ltd  which will see operations contracted to start in the middle of October this year.

Bird concluded: “The net contribution from these alluvial projects should be very significant allowing the Company to move forward with the hard rock mine construction and to seek further opportunities, generally in southern Africa.”

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Fri, 29 Sep 2017 11:32:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/184833/xtract-resources-looking-at-a-number-of-opportunities-to-enhance-shareholder-value-outside-mozambique-but-within-southern-africa-184833.html