Xtract Resources inks Mozambique mining contractor pact with Huafei Gold

Writer, Stock Market Wire
Wednesday, January 16, 2019 - 14:58

Xtract Resources said its Mozambican subsidiary Explorator had concluded a mining contractor agreement with Huafei Gold Resources for the exploitation of gold deposits at the Manica mining concession.

Huafei had paid an initial entry fee to Xtract of $150k, with another $200k to be recovered through future alluvial gold production.

Explorator would be entitled to retain a net percentage of the gold mined of 22% until the entry fee had been settled in full, and 20% thereafter.

The initial contract period was for 10 years, or by the depletion of the alluvials, with an option to extend for five years if the alluvials were not yet depleted.

'A number of contractors have expressed interest in mining the other areas of the alluvials in the Manica concession,' chief executive Colin Bird said.

'Huafei Gold Resources was chosen because of their willingness to pay an upfront payment and demonstrated consistency of operation with their existing contract.'

'They provided extra equipment into the concession and we look forward to increased production over the coming months and on completion of the rainy season.'

At 2:58pm: (LON:XTR) Xtract Resources Plc share price was +0.13p at 0.85p

Related content

Xtract Resources welcomes planning progress at Manica project in Mozambique

Xtract Resources said partner Mutapa Mining and Processing had commenced planning work for the Manica hard-rock gold project in Mozambique.

Mutapa had completed the project's...

Wed, 04/09/2019 - 14:38

Xtract Resources records positive test results at Kalengwa copper play in Zambia

Xtract Resources said it had collected positive assay results from preliminary sampling of mine tailings at the Kalengwa copper project in Zambia.

Sampling yielded an...

Tue, 20/08/2019 - 14:54

Xtract Resources confirms drill targets at Zambia copper play

Xtract Resources said its technical consultants had undertaken an interim review of drill targets over the Eureka in Zambia.

They had also conducted a historic...

Fri, 09/08/2019 - 07:41

Xtract Resources inks agreement with KPZ to develop Zambia copper play

Xtract Resources said it had concluded a memorandum of agreement with KPZ International involving the potential development of a copper prospect in Zambia.

The agreement...

Mon, 15/07/2019 - 13:20

Xtract Resources books annual loss amid disappointing gold sales

Xtract Resources booked an annual loss after higher gold sales nevertheless failed to offset expenses.

Pre-tax losses for the year through December amounted to £736k,...

Wed, 29/05/2019 - 13:12