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MoU on Gold & Copper Project in Chile
MoU on Gold & Copper Project in Chile.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7371Q Xtract Resources plc 17 October 2013 \n \n\n \n \n17 October 2013\nXtract Resources Plc\n(\"Xtract\" or \"the Company\")\n \nExclusive Agreement to conduct due diligence and option to acquire 100% of the Chépica Gold and Copper Mine together with 100% of Mejillones Phosphate Property in Chile\n \n \nXtract Resources Plc (AIM: XTR) has signed a Memorandum of Understanding ('MOU') with Polar Star Mining Corporation ('Polar Star') which provides an exclusive four month period for further due diligence and an option to acquire Minera Polar (the 'Project'), which has an earn-in agreement on the Chépica gold and copper mine and the Mejillones Phosphate project in Chile. \n \nSummary\n \n· Xtract has agreed to pay Polar Star US$250,000 which provides an exclusive four month option to conduct due diligence on Chépica (\"Exclusivity fee\").\n· Polar Star, via a 100% owned Barbados subsidiary, owns 100% of the Chilean company Minera Polar, which in turn has an earn-in agreement on Chépica, a gold and copper producing mine ('Chépica'), located 300km south of Santiago, Chile.\n· Polar Star, via a 100% owned Barbados subsidiary, Polar Star (Barbados) Limited, also owns 100% of the Mejillones Phosphate project ('Mejillones'), located near the city of Antofagasta in Northern Chile. \n· Chépica is an operating gold and copper mine with good cash flow potential. \n· Mejillones is a phosphate development project covering 15,800 hectares with initial technical reports indicating the potential to delineate 60 to 200Mt of phosphate upgradeable to over 25% P205.\n· Should the Company elect to enter into a definitive agreement for the acquisition of Chépica from Polar Star, the previous JV agreement on Mejillones will be replaced and Xtract will own 100% of the project. \n \nJan Nelson, CEO commented: \"Having outlined the strategy to focus on precious and base metal opportunities that could deliver near term production and cash flow, the Board believes the Chépica gold and copper mine could represent a major step in achieving our stated strategy. The Board intends to use the four month exclusivity period to review the operational and financ...