logo-loader
viewXtract Resources PLC

Xtract Resources extends partnership with Omnia Mining for Manica project

Xtract Resources said the deal with Omnia gives the company "the opportunity for a fast track hard rock operation".

gold
Omnia will use its processing plant to target hard rock occurrences at Manica

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. 

Quick facts: Xtract Resources PLC

Price: 1.05 GBX

LSE:XTR
Market: LSE
Market Cap: £4.6 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Xtract Resources PLC named herein, including the promotion by the Company of Xtract Resources PLC in any Content on the Site, the Company...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Xtract Resources boosts its interest in Zambia with Eureka project

Colin Bird, executive chairman of Xtract Resources PLC (LON:XTR), caught up with Proactive London's Andrew Scott to discuss an option agreement they've signed on the Eureka copper/gold project in Zambia. Xtract will have an option to acquire a 50% stake in the project before 1 October...

on 5/3/19

2 min read