RE: Addendum to Manica agreement RNS out I see24 Feb 2025 14:28
Colin Bird, Executive Chairman of Xtract, commented
"We have concluded discussions with the Buyers around their concerns with the pressure the future payment schedule would present to their current operations. The current mining is of oxide ore and due to the nature of the ore body the ore being mined will transition between oxides and sulphides, thus reducing overall recovery and profitability. The Buyers have confirmed the operation continues with the available oxides and is producing satisfactory returns on investment. During the process of designing the sulphide plant flowsheet, the Buyers have acquired additional sulphide projects in the adjacent area and the different metallurgical characteristics of these may affect the overall design of the sulphide plant. As a result of this the Buyers have asked that the payment schedule be amended to allow time for final ore testing leading to final sulphide plant design. Xtract is very familiar with the changing nature of the ore body at Manica and the effect this can have on the plant design. The Board have agreed to the Vendor's request, to revise the scheduling of the balloon and deferred payments on the basis that this will assist with a smooth transition from oxide to sulphide mining and a revised oxide mining plan which will ensure continuity of operations and maintain a stable working environment at Manica the cashflow from which is being used to pay Xtract."
Let's see then,
Because MMP and their pals are going to have to transition from alluvials to mining ore, something that was the main reason CB had to sell it IE the uncertainty of what the gold production would be and the cost of the plant, plus the they have bought some more land to mine elsewhere, we have to forego $3m until the the end of the period agreed ?
It looks like we are taking the risk we thought we had sold ( for a song) and subsidising the tricky transition so it won't such a worrying time for the poor dears ?
What a sorry state of affairs.