Business
Manica Alluvial Mining Contractor Agreement
Manica Alluvial Mining Contractor Agreement.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 4021I Xtract Resources plc 19 June 2017 \n\n \nFor immediate release\n 19 June 2017\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\nManica Gold Alluvial Mining Contractor Agreement\n \nThe Board of Xtract Resources Plc (\"Xtract\" or the \"Company\") is pleased to announce that the Company's wholly-owned Mozambican subsidiary, Explorator Limitada (\"Explorator\") has concluded a Mining Contractor agreement (\"Mining Contractor Agreement\" or \"Agreement\") with Omnia Mining Ltd and Moz Gold Group Limitida (\"Contract Miners\") for the exploitation of alluvial gold deposits at its Manica mining concession in Mozambique.\n \nHighlights\n \n· Experienced alluvial mining contractors, who are already operating in the Manica area, appointed to mine the western half of the alluvials in the Manica Concession \n· Agreement provides for monthly payments against the monthly run-of-mine performance\n· Initial mining to take place (subject to obtaining the environmental impact assessment) no later than 1 September 2017 with a minimum capacity of 220,000 tonnes per month to be achieved by 1 November 2017\n· Price per tonne to vary according to installed capacity\n· Run-of-mine payment adjusted against gold price with a floor price of $US1,250 per ounce and a cap of US$1,600 per ounce\n· Annual production target of 2,640,000 tonnes of alluvial materials, with penalites and termination clauses against non-performance\n· Assuming a base gold price of US$1,250, from November onwards expected Explorator attribuatable monthly revenue of US$165,000\n· Initial contract period of 10 years or the depletion of alluvials, with an option to extend for a further 5 years if the alluvials are not yet depleted\n \nColin Bird, Chairman said: \"The alluvial agreement is a very positive move for Xtract, providing potential significant cash flows with upside based on contractual minimums. We are currently negotiating the eastern half of the concession with other contractors and expect to make an announcement by the end of July 2017. This Agreement will begin early next week and we fully expect to rece...