Business
Manica alluvial gold collaboration agreement
Manica alluvial gold collaboration agreement.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7388W Xtract Resources plc 13 February 2017 \n\n \nFor immediate release\n 13 February 2017\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\nManica Gold Alluvial Collaboration Agreement\n \nThe Board of Xtract Resources Plc (\"Xtract\" or the \"Company\") are pleased to announce that Xtract and Nexus Capital Limited (previously Mineral Technologies International Limited, \"Nexus\") have agreed the terms of a collaboration agreement for the exploitation of alluvial gold deposits at Manica. The Xtract Board previously announced that it would conduct a total review of the Company's position and prospects relative to its various projects. An essential part of this internal review was the alluvial contract, which was previously announced on 4 May 2016. The alluvial contract in its existing form was questioned by both parties who agreed that there was a more commercial and risk free basis to jointly work the alluvial gold deposits by contracting with surrounding mining operators and to receive a royalty while minimising financing, execution and operating risk to Xtract and Nexus. \n \nHighlights\n \n· Collaboration agreement (\"Collaboration Agreement\") signed between the Company and Nexus\n· Xtract and Nexus have identified several mining contractors in the area who have long term commercial experience of operating alluvials in the area together with unutilised processing plant capacity\n· Nexus to assume all costs with the exception of contribution to monitoring staff and transport of gold doré to the chosen refinery \n· Xtract expects to receive first income under the new agreement during Quarter 2 of 2017\n· Collaboration Agreement will allow several sub-agreements with 3rd party mining contractors within the Manica concession resulting in potential revenues for the Company's wholly-owned Mozambican subsidiary, Explorator Limitada (\"Explorator\")\n· Discussions are currently being held with a number of third parties to conclude commercial agreements for exploitation of alluvials within the Manica concession\n· The Collaboration Agreement provides Xtract with ongoing potential for long term...