3rd Feb 2015 09:21
LONDON (Alliance News) - Xtract Resources PLC on Tuesday said it remains in talks to renegotiate the terms of its earn-in option for the Chepica Gold and Copper mine in Chile and said all payments have been suspended on the agreement of both parties until a final agreement is reached.
On January 20, the company said a disruption to production at Chepica had hit the company's working capital, meaning it is having to negotiate the deferral of payments it owes under an earn-in option agreement.
Xtract Resources is due to pay USD110,000 by the end of January, USD135,000 and USD175,000 by the end of February and March, and then payments totalling USD2.4 million due on a quarterly basis from December 2015 to December 2016.
Shares in Xtract were down 2.3% to 0.0733 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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