(Sharecast News) - AIM-listed Xtract Resources has signed a new joint venture to mine copper in a 107,000-hectare area in Northwest Zambia.
The partnership, with Cooperlemon Consultancy Limited, relates to licenses 29123-HQ-LEL and 30459-HQ-LEL located within the Western Foreland geological district that hosts the Kamoa-Kakula deposit and the Central Fold and Thrust Belt.
Xtract will earn a 65% stake in the joint venture and spend up to $2m on exploration over an initial two-year period, expected to start next month.
If proven successful, and tests indicate a resource of at least 500,000 tonnes of contained copper, there will be a second two-year exploration period, at a cost of $3m to Xtract.
Executive chair Colin Bird said: "We are very excited about the prospects for the joint venture and look forward to updating the market on exploration activities."
The stock was up 4% at 1.4p by 0932 on Thursday.
Xtract (XTR)