27th Mar 2015 08:07
LONDON (Alliance News) - Xtract Resources PLC Friday said it has signed a deed of assignment with Mineral Technologies International Ltd which gives the company the option to fully acquire a sulphide copper tailings project in South Africa.
Xtract has paid USD30,000 to have the option to acquire the project in the next seven months. Xtract said the project has 33.8 million tonnes of sulphide copper tailings material and has two tailings dams and said if the drilling and metallurgical testwork confirms the economic potential of the project, it will elect to fully acquire the project.
Xtract would pay USD5.7 million in staged payments over a two year period to acquire a 100% stake in the project, should it elect to.
"We have secured an option for a project with significant potential value for what we consider a relatively low entry and evaluation cost. The Project is on surface and if Xtract deems it to be viable, following initial test work, it will only require retreatment and no further mining will be necessary," said Chief Executive Jan Nelson.
"It will therefore fall within the lower quartile of the cost curve when compared to other regional copper producers. The Project has the potential to transform the company from a small junior miner to a mid-tier, low cost copper producer," he added.
Xtract shares rose by 23.1% to 0.240 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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