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Xtract Resources Subsidiary Negotiates New Terms At Manica West

Thu, 7th Dec 2017 11:40

LONDON (Alliance News) - Xtract Resources PLC said on Thursday its subsidiary Explorator Limitada has negotiated "significantly enhanced" terms under the existing mining contractor agreement for the western half of Mozambique's Manica gold project.

The deal, signed with Omnia Mining Ltd and Moz Gold Group Limitada, concerns the mining of alluvial gold deposits at Manica.

Xtract said the western mining area will be split into two blocks, the 'M' and 'O' blocks.

Moz Group has been appointed to conduct mining and processing on the M block, while Omnia is to conduct the work on the O block.

Omnia has cancelled its right under the original June agreement and will sign a new agreement over the O block within 60 days.

Executive Chairman Colin Bird commented: "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 kilometre 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," Bird said.

Xtract said on Wednesday it expects gold production on the eastern half of the Manica project to increase monthly from now. The eastern portion is being worked on by Sino Minerals Corp.

Xtract Resources were up 0.7% Thursday at 2.92 pence per share.

By George Collard;

Copyright 2017 Alliance News Limited. All Rights Reserved.

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