Xtract Resources plc Alluvial collaboration agreement update (7155W)
December 12 2019 - 8:30AM
UK Regulatory
TIDMXTR
RNS Number : 7155W
Xtract Resources plc
12 December 2019
For immediate release
12 December 2019
Xtract Resources Plc
("Xtract" or the "Company")
Alluvial Collaboration Agreement Update
The Board of Xtract ("Xtract" or the "Company") announces that
the Collaboration Agreement ("Agreement") between the Company and
Nexus Capital Holdings PTE Limited ("Nexus") for the exploitation
of the Manica alluvials has now been terminated by Nexus with an
effective date of 2 December 2019. The terms of the Collaboration
Agreement were previously announced on 30 October 2018, pursuant to
which Xtract's net share of its wholly-owned Mozambican subsidiary
Explorator Limitada's gold revenue and costs was 50%, the balance
being for the account of Nexus. Following termination of the
Collaboration Agreement, Xtract's net share of Explorator's share
of gold revenue and costs will now be 100%.
Alluvial production is unaffected by the termination. In January
this year, Xtract announced that it had concluded a mining
contractor agreement with Huafei Gold Resources Co Limitada
(formerly Sino Minerals Investment Company Limited) ("Huafei") for
the exploitation of alluvial gold deposits at its Manica mining
concession in Mozambique. Huafei has the exclusive right to mine
the entire unconsolidated alluvial deposits on the permitted area
of the mining concession area. The preliminary unaudited results
for alluvial mining for the Manica Concession for the three-month
period ended 30 September 2019 were announced on 12 November
2019.
Nexus have submitted a claim for an amount of US$110,128 plus
interest (which amounts to US$7,341) which Xtract and Explorator
Limitada disputes. Arbitration on settlement of this amount is now
ongoing and an amount in excess of the claim is held in a separate
bank account of Explorator to cover settlement in, the Directors'
view, the unlikely award under arbitration in favour of Nexus.
Colin Bird, Executive Chairman 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".
Enquiries:
Xtract Resources Plc Colin Bird, +44 (0)20 3416 6471
Executive Chairman www.xtractresources.com
Beaumont Cornish Limited Roland Cornish +44 (0)207628 3396
Nominated Adviser and Michael Cornish www.beaumontcornish.co.uk
Joint Broker Felicity Geidt
Novum Securities Limited Colin Rowbury +44 (0)207 399 9427
Joint Broker www.novumsecurities.com
ENDS
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END
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