12th Dec 2019 14:43
(Alliance News) - Xtract Resources PLC on Thursday said Nexus Capital Holdings PTE Ltd has terminated a collaboration agreement for the exploitation of alluvial gold deposits at Xtract's Manica mining concession in Mozambique.
Xtract shares in London were down 3.3% at 1.02 pence each in London.
Under the agreement, Xtract's gold revenue and costs share for the Manica project was 50%, the balance being for the account of Nexus. Following termination, Xtract's net share of gold revenue and costs will be 100%.
Xtract said that production at the Manica remains unaffected by termination of the agreement. Xtract in January contracted Huafei Gold Resources Co Ltda for the exploitation of alluvial gold deposits at Manica concession.
The company also said Nexus has submitted a claim for USD110,128 plus interest, which amounts to USD7,341, which Xtract is disputing. Arbitration on the settlement with Nexus is now ongoing, and an amount in excess of the claim is held in a separate bank account to cover a potential settlement, Xtract added.
Colin Bird, Xtract executive chair, said: "The company and its subsidiaries have maintained a good standing in jurisdictions it operates in and continues to comply with laws and regulations of Mozambique. Our alluvial operations continue unaffected by this change announced today."
By Tapan Panchal; [email protected]
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