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.