Last checked at 30 Sep 2016 07:00
30 September 2016
This announcement contains inside information
Xtract Resources Plc
Manica Update
The Board of Xtract Resources Plc ("Xtract" or the "Company") announces that, further to the notification by the Company on 17 August 2016, the conditional sale and purchase agreement between the Company, Nexus Capital Limited and Mineral Technologies International Limited ("MTI") through which the Company was to dispose of its 100% interest in the Manica gold project for US$17.5 million, has lapsed due to certain conditions precedent not being met and will therefore not be effected.
The Company confirms that its discussions with MTI, regarding revisions to the existing joint venture agreement between the parties, to mine the alluvial gold deposit at Manica, are progressing well and the Company anticipates that a satisfactory conclusion for both parties can be announced soon.
Colin Bird, Executive Chairman, said: "The ending of the sale and purchase agreement brings clarity and certainty to our ownership of the Manica gold project. Manica is one of the more advanced low cost open pit projects in Southern Africa and is well placed in the population of emerging gold mines. The discussions with MTI, regarding the alluvial project are ongoing and progressing satisfactorily. The Company has commissioned the final leg of the environmental study which is required to complete the full bankable feasibility study. We anticipate delivery of the bankable feasibility study no later than the end of November 2016, which will provide us with flexibility when assessing our strategic options".
Enquiries:
Xtract Resources Plc | Colin Bird, Executive Chairman
| +44 (0)20 3416 6471
|
Cenkos Securities plc | Derrick Lee Beth McKiernan | +44 (0)131 220 6939
|
Beaufort Securities | Jon Belliss
| +44 (0)207 382 8300 |