Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Xtract Resources reaches “equitable agreement” with Nexus over Manica mining deal

The mining group said the new agreement provides it with more favourable terms and potential additional income with minimal operating risk
Xtract Resources reaches “equitable agreement” with Nexus over Manica mining deal
Xtract said it had reached a more "equitable agreement" with Nexus over its collaboration at Manica

Xtract Resources PLC (LON:XTR) said it has agreed to revise the terms of its collaboration agreement with Nexus Capital Limited for the mining of alluvial gold deposits at its Manica concession in Mozambique.

The AIM-listed miner said on Tuesday that amendments made to an agreement made between the parties in June 2017 would create a new “equitable agreement".

READ: Xtract Resources reports 6.35% quarter-on-quarter increase in gold production at Manica Concession

Xtract announced in February 2017 that it had sealed a deal with Hong Kong-based Nexus to develop the alluvial gold interest at Manica together through the appointment of third-party contract miners, who would have the exclusive right to mine alluvial deposits on specified areas of the concession.

The terms of the agreement have been revised several times since. However, Xtract said the new agreement would help ensure that net gold production is shared equally between the two companies and that all entry fees received from the contract miners after 31 May 2018 are divided equally between the pair.

Xtract also agreed a settlement of US$76,000 with Nexus for fees accrued between 1 January 2018 and 31 May 2018.

Xtract said the new agreement provides it with more favourable terms and potential additional income with minimal operating risk.

"The new agreement is the result of prolonged negotiations between Nexus and Xtract targeted towards an equitable agreement which reflects concession ownership and our responsibilities,” said Xtract CEO Colin Bird.

“This agreement has removed key aspects of negative control by Nexus and remains in the general interest of both parties. I am very pleased that agreement has been reached with Nexus and now look forward to working to increase the production of the Manica alluvials by revising the current contracting arrangements,” he added.

Xtract Resources shares were 1.5% up at 0.68p in late morning trade.

View full XTR profile View Profile

Xtract Resources PLC Timeline

Related Articles

vanadium periodic table symbol
November 02 2018
The study demonstrates a viable open-pit mining operation with a positive business case.
Old iron ore workings at Grants Basin
October 16 2018
The 3,500-metre drilling program is funded by SIMEC Mining and forms part of due diligence.
Copper Blow drilling
October 25 2018
The company has planned further extensive soil and geochemical surveys over the anomalies at Copper Blow.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use