Business
Proposed JV on Phosphate Property in Chile
Proposed JV on Phosphate Property in Chile.
About this update from Xtract Resources Plc
[{"type":"text","content":"\n \nRNS Number : 9623I Xtract Resources plc 10 July 2013 \n \n\n10 July 2013\n \nXtract Resources Plc\n(\"Xtract\" or the \"Company\")\n \nXtract signs Heads of Agreement to enter into a Proposed JV with Polar Star \non Mejillones Phosphate Property in Chile\n \nXtract (AIM: XTR) is pleased to announce that it has signed a Heads of Agreement ('HOA') to enter into a proposed Joint Venture ('JV') with Polar Star Mining Corporation ('Polar Star') on the Mejillones Phosphate and Uranium Property in Chile (the \"Property\"), covering approximately 16,400 hectares. \n \nHighlights\n \n· Upon completion of certain technical work and capital expenditure from existing cash resources, Xtract will have the right to earn-in up to 75% of the Property, with the potential to buy the remaining 25% stake from Polar Star\n· The Property under consideration targets 60-200 million tons of open pit sedimentary phosphate-uranium with a grade of +32% P2O5 post mechanical upgrading\n· The Property are within 15km of a major port accessible by paved roads\n· This transaction marks the first step to of a new strategy adopted by the Board to invest in resource assets with near-term production capability and significant growth potential\n· Focus will be on assets which are relatively straight forward to evaluate with low entry cost and located in more favorable mining jurisdictions\n \nJan Nelson, CEO of Xtract commented that; \"In line with Xtract's new strategy, the Board has chosen to invest in resource assets near or at surface, on the low end of the cash cost curve that can be brought into production in less than 24 months to realise cash-flow and yield significant upside potential. The Property provides us with such an opportunity without any initial dilution to shareholders. We have assembled a small but very strong technical team to define the economic potential of the deposit.\" \n \n1. Clear new strategy\n \nThe Board of the Company has approved an investment framework to identify and invest in a portfolio of near-term resource assets that:\n \n· Are near or at surface and will not incur major capital devel...