Fair Bride Update

RNS Number : 2182T

Xtract Resources plc

21 July 2022

 

For immediate release

21 July 2022

Xtract Resources Plc

("Xtract" or the "Company")

Fair Bride Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") is pleased to announce that Mutapa Mining and Processing LDA has informed the Company that the first gold has been poured at its Fair Bride hard-rock gold mining operations at the Manica Concession in Mozambique. The production was started with the introduction of low-grade ore to commission all parts of the processing circuit. The company will make a further announcement as and when the plant moves into regular production.

Fair Bride Hard Rock Mining and Collaboration Agreement

In May 2019, the Company entered into an agreement with Mutapa Mining and Processing LDA ("MMP") (the "MiningContractor") .

The Company appointed MMP an independent mineral processing contractor, to provide a technical solution for processing Explorator's material, to conduct hard rock mining on the Manica Project permitted area and to process the mined ore for the recovery of gold for a period of 10 years with an option to extend.

Under the terms of the Collaboration Agreement, MMP will receive 77% of all the operating profit produced from the permitted area through the performance of the contract by MMP when the prevailing price of gold is greater than US$1,250 per ounce. MMP's entitlement increases to 78.5% at a prevailing gold price between US$1,175 and US$1,249 per ounce, and to 80% when the prevailing gold price is less than US$1,100 per ounce. For the purposes of the Collaboration Agreement, "profit" is calculated as: Revenue on Sale less deductible costs (excluding non-cash items) and corporation tax. Any royalty payments due to any third parties (such as royalty and streaming payments) are for the account of MMP and will be settled from its entitlement under the Collaboration Agreement.

Photograph of Manica First Gold Pour

http://www.rns-pdf.londonstockexchange.com/rns/2182T_1-2022-7-20.pdf

Further details are available from the Company's   website which details the company's project portfolio as well as a copy of this announcement:  www.xtractresources.com

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. The person who arranged for the release of this announcement on behalf of the Company was Joel Silberstein, Director.

Enquiries :

Xtract Resources Plc	Colin Bird, Executive Chairman	[phone] www.xtractresources.com
Beaumont Cornish Limited Nominated Adviser and Joint Broker	Roland Cornish Michael Cornish Felicity Geidt	[phone] www.beaumontcornish.co.uk
Novum Securities Limited Joint Broker	Jon Bellis Colin Rowbury	[phone] www.novumsecurities.com

ENDS

 

END

 

 

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