30th Jun 2016 09:39
LONDON (Alliance News) - Xtract Resources PLC on Thursday said its proposed disposal of its Manica project in Mozambique was progressing well, and said it was currently assessing a lead-zinc issue at its Chepica gold and copper mine in Chile.
The AIM-listed company said its proposed disposal of the Manica project, which was announced last month, for USD17.5 million to Nexus Capital Ltd and Mineral Technologies International Ltd, was progressing well and said it has been advised that there is no reason why the deal will not progress.
The date at which the Xtract is required to deliver the bank feasibility study to the purchasers has been pushed back from Thursday, as it is "near completion", having previously agreed that if Xtract did not deliver the study by Thursday, the purchase consideration would be reduced by USD1.0 million. No change to the consideration has taken place, as the deadline has been extended.
Xtract said it was in advanced talks with Auroch Minerals Ltd, from which it purchased the Manica site last year, with regard to the remaining USD2.5 million payment and said a revised payment date for Xtract to transfer the money will be confirmed in due course.
Meanwhile, at the Chepica mine, underground production volume continues at between 8,500 tonnes and 10,000 tonnes per month, and Xtract said it was currently assessing a lead-zinc issue, which has been impacting gold recovery, as well as completing a full review of the plant.
The resource upgrade is advancing and progressing well at the mine, and Xtract's discussions regarding the renegotiation of the options payments remain on-going, the company said.
Shares in Xtract Resources were up 17% at 0.114 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Xtract