Mozambique Gold Mining: Xtract Resources to sell mining concession in Manica

British company Xtract Resources agreed to sell a gold mine in Manica, Mozambique to Nexus Capital and to Mineral Technologies International, for US$17.5 million, the company said in a statement issued Thursday.

The deal, which is still conditional, means that Xtract will sell 100 percent of Explorator Limitada, the entity established in Mozambique and which holds mining license 3990C, to the other two companies.

“The company has been exploring financing options for the project in Manica, it became clear it needed US$35 million just to start the activity” the statement said adding that the project is not risk free, particularly for shareholders.

Xtract Resources also reported that a feasibility study should be completed by the end of June and the first results should occur in the third quarter of 2016 in relation to the material in alluvium, and gold deposits in rock material will only see results at the end of 2017.

At the beginning of May the company announced that the concession’s gold reserves had been revised upwards by 36 percent to 35.6 tonnes, with a ratio of one gram of gold per ton of rock material. (macauhub/MZ)