Mozambique Mining: Xtract Resources reduces sale price of gold mine in Manica

British company Xtract Resources has reduced the sale price of a gold mine it owns the concession to in Manica, Mozambique to US$15 million, the company said in a statement on Wednesday.

Last May, the company announced it was in negotiations with Nexus Capital Limited and Mineral Technologies International for the transfer of the entire gold exploration license in Manica against payment of US$17.5 million in cash.

After a review of the terms of the initial contract, Xtract Resources will receive an initial payment of US$2 million by 12 August in exchange for the cost of the transaction lowering.

This initial value will allow Xtract in the same period to pay US$2.5 million to Auroch Minerals NL for the acquisition of a gold operating license in Manica in 2015, of which US$750,000 would be transferred on Wednesday.

The company also said that the first gold was expected to be produced in the third quarter of 2016 from alluvial gold deposits and deposits in rocky material should begin to yield results by the end of 2017. (macauhub/MZ)