The board of Xtract Resources Plc has announced that its wholly-owned Mozambican subsidiary, Explorator Limitada, has negotiated significantly enhanced terms for the western portion of the alluvial concession under the existing mining contractor agreement dated 19 June 2017 with Omnia Mining Ltd and Moz Gold Group Limitida for the exploitation of alluvial gold deposits at its Manica mining concession in Mozambique.
Colin Bird, Executive Chairman said: "The size of the project is such that the division of the western half of the alluvial project was agreed to in the best interest of all parties, especially on the basis that Omnia has a significant alluvial plant some 3 km west of the Manica Concession that has large capacity and is currently under-utilised. The amended June agreement is expected to enable a significant increase in production from the two plants which will have the effect in increasing revenue whilst reducing operating risk."
Addendum to the June Mining Contractor Agreement
Pursuant to the addendum to the June Mining Contractor Agreement, Explorator has appointed Moz Group Limitada on an exclusive basis to conduct alluvial mining on the permitted area (the ‘M’ Blocks) and to process the mined ore for the recovery of gold.
Omnia Mining Ltd will cancel all their rights and benefits under the June Mining and Processing Agreement and will enter into a new agreement with the company for all the ‘O’ blocks on the Permitted Area.
Omnia Mining Ltd has agreed to sign a new agreement with the company within 60 days and will be free of any claims and responsibilities pursuant to the June mining and processing agreement.
Read the article online at: https://www.globalminingreview.com/finance-business/07122017/xtract-secures-enhanced-terms-for-the-western-portion-of-the-manica-alluvial-concession/