12th Nov 2015 10:56
LONDON (Alliance News) - Xtract Resources PLC on Thursday said it has deferred payments on the earn-in option for the Chepica gold and copper mine in Chile and has extended the option period for its slime dumps agreement with O'Kiep Copper Co Pty Ltd.
Under the new terms of the Chepica agreement, Xtract will pay USD385,000 now, followed for nine monthly installments of the same amount to total USD3.85 million. It had been due to pay USD350,000 in October and December, with further quarterly payments to be made before a final payment of USD1.1 million, totalling the same USD3.85 million.
In addition, the group has extended its contract with O'Kiep to February 2016 in exchange for a further payment of ZAR1.5 million. The agreement covers the O'Kiep and Caroulsberg copper projects in South Africa.
"We are pleased to have deferred our payments on Chepica and appreciate the flexibility we have been given on the option payments. At O'Kiep and Carolusberg, the extension of the Option period will enable our team to fully evaluate the dumps and make an informed assessment as to whether to proceed or not," said Chief Executive Jan Nelson.
Xtract shares were down 3.4% to 0.198 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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