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General mining & base metals

Xtract Resources in talks over new payment schedule at Chepica

A payment of US$385,000 was due last month but this has been deferred while revised terms are being negotiated.

Xtract Resources Plc (LON:XTR) is in the final stages of re-negotiating its earn-in option agreement over the Chepica gold and copper mine in Chile for a second time.

A payment of US$385,000 was due last month but this has been deferred while revised terms are being negotiated.

The March payment was to be followed by a further nine monthly instalments of US$385,000, totalling US$3.85mln, by the end of the year.

In November, Xtract deferred all 2015 payments until 2016 but the processing plant was shut between December and February after the deaths of two employees.

Xtract said the basis for the revisions to the agreement have been agreed in principle with the option holder and the new terms will give the company additional working capital flexibility.

Processing at Chepica re-started in early February.

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