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Xtract Resources awaits down payment for Manica asset sale

Talks are ongoing with the buyer of Manica as well as the Auroch Minerals, the company Xtract acquired the asset from last year.

Gold and dollars
The sale was agreed at US$17.5mln.

Xtract Resources PLC (LON:XTR) said it hasn’t yet received a US$2mln down-payment on the US$15mln purchase of the company’s Manica gold project in Mozambique.

Buyers Nexus Capital Limited and Mineral Technologies were expected to have provided the initial funds by August 12.

Xtract, in a stock exchange announcement, said the two sides were currently in talks over the present structure of the deal, which was originally struck for US$17.5mln.

“These discussions may result in further revisions to the terms of the transaction, and also amendments to the terms of the company's existing joint venture 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,” a statement.

In the same update, Xtract said that it still needs to make a final payment Auroch Minerals of US$1.65mln related to the initial purchase of Manica last summer.

“The parties are in discussions” in this regard, it company added.

At Chepica, the company’s gold and copper mine in Chile, the refurbishment of the crushing plant and construction of a new floatation plant have begun and are “progressing on schedule”.

Xtract said it had paid US$150,000 as part of an option agreement when it bought Chepica and is “on-going discussions” regarding the further US$3.5mln due.

Quick facts: Xtract Resources PLC

Price: 0.8 GBX

Market: LSE
Market Cap: £3.66 m

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