Business
Alluvial Collaboration Agreement terms amended
Alluvial Collaboration Agreement terms amended.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7208F Xtract Resources plc 30 October 2018 \n\n \nFor immediate release\n30 October 2018\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\n Alluvial Collaboration Agreement terms amended\n \nThe Board of Xtract Resources Plc (\"Xtract\" or the \"Company\") is pleased to announce that Xtract and Nexus Capital Limited (previously Mineral Technologies International Limited, \"Nexus\") have today agreed to revise the terms of the collaboration agreement for the exploitation of alluvial gold deposits at Manica, which was previously amended and agreed to by the parties as announced on 20 June 2017. \n \nHighlights\n \n· The new collaboration agreement (\"New Agreement\") signed between the Company and Nexus\n· Net gold production attributable to the Company to be shared equally with Nexus\n· All Entry Fees received from the Contract Miners after 31 May 2018 to be divided equally between the Company and Nexus\n· Agreed settlement of US$76,000 to be paid by the Company to Nexus for fees accrued between 1 January 2018 and 31 May 2018 \n· The New Agreement provides Xtract with more favourable terms and potential additional income with minimal operating risk\n \nColin Bird, Executive Chairman said: \n\"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. 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.\"\n \nBackground to the new Collaboration Agreement \nOn 13 February 2017, the Company announced that it had entered into an agreement with Nexus (a private Hong Kong registered company) and agreed to develop the alluvial gold interest of the Mining Concession together through the appointment of third-party contract miners, who would have the exclusive right to mine unconsolidated alluvial deposits on specified areas of the Mining Concession area (\"Februar...