REG - Xtract Resources plc - Fair Bride Update

Xtract ResourcesAnnouncement

21/07/2022 07:00

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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 "Mining Contractor").

 

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
(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 (http://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,          +44 (0)20 3416 6471

                                                    Executive Chairman   www.xtractresources.com (http://www.xtractresources.com)

 Beaumont Cornish Limited                           Roland Cornish       +44 (0)207628 3369

 Nominated Adviser and Joint Broker                 Michael Cornish      www.beaumontcornish.co.uk (http://www.beaumontcornish.co.uk)

                                                    Felicity Geidt

 Novum Securities Limited                           Jon Bellis           +44 (0)207 399 9427

 Joint Broker                                       Colin Rowbury        www.novumsecurities.com (http://www.novumsecurities.com)

 

 

 

ENDS

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