Xtract Resources PLC (LON:XTR) and Nexus Capital Limited have tweaked the terms of their collaboration agreement for alluvial gold mining at Manica in Mozambique.
The original agreement envisaged the use of contract miners, who now will have to pay an entry fee.
Under the new terms, provided at least two alluvial mining agreements are signed no later than 1 December 2017, all previous agreements with Nexus will lapse .
The collaboration agreement provides Xtract with potential for significant long term income with minimal operating risk, it said.
Colin Bird, chairman said: "The addendum to the Collaboration Agreement, represents a practical working arrangement between the Company and Nexus.
“The alluvial mining contracts may differ considerably in structure and it was therefore deemed appropriate to modify the terms of the agreement to allow the parties to enter into various contracts.
“The company is currently negotiating the eastern part of the gold alluvial deposit with other contract miners as well as reviewing financing alternatives for the hard rock deposit".