viewXtract Resources PLC

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 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.

Quick facts: Xtract Resources PLC

Price: 1.3382 GBX

Market: LSE
Market Cap: £6.12 m

Add related topics to MyProactive

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


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...



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