Mozambique Mining: Xtract Resources signs gold mining contract in Manica

Xtract Resources has updated the terms of the contract signed with the Moz Gold Group for the exploration of alluvial gold deposits in the Mozambican province of Manica, under which as early as March it will receive a minimum of 2.25 kilograms of gold, the British company said in a statement issued on Tuesday.

From March, the Moz Gold Group, which operates Block M of the western half of the mining concession owned by Xtract Resources, will have to deliver a minimum of 3.0 kilograms of gold every month until the deposits are depleted or during the contractual term of 10 years.

The new contract, signed by the 100% owned Mozambican subsidiary, Explorator Limitada, stipulates that the agreed payments will be attributed 40% to Xtract Resources and the remaining 60% to Nexus Capital Limited, under a collaboration agreement signed on 20 June 2017.

The statement said that the new contractual terms will allow the Moz Gold Group to increase gold production and pay off existing debt, which was taken on because so far it had not met the terms of the initial contract.

The mining of the eastern half of the Manica concession was contracted to Sino Minerals Investment Company, according to a statement released in October 2017. (macauhub)