REG - Xtract Resources plc - Silverking Mining Licence Joint Venture

Xtract ResourcesAnnouncement

Yesterday 09:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260203:nRSC5085Ra&default-theme=true

RNS Number : 5085R  Xtract Resources plc  03 February 2026

 

3 February 2026

Xtract Resources Plc

("Xtract" or the "Company")

Silverking Mining Licence Joint Venture

 

The Board of Xtract Resources Plc ("Xtract" or the "Company") announce that
they have agreed with Oval Mining Limited ("Oval") the holder of Small Scale
Mining Licence 34544-HQ-SML in the Mumbwa District of Zambia (the "Mining
Licence") and Cooperlemon Consultancy Limited ("Cooperlemon") to enter into a
new joint venture for the development of copper mining operations at the
Mining Licence ("Silverking Mining Joint Venture") to produce copper
concentrate.

 

Colin Bird, Executive Chairman of Xtract, commented

"We are pleased to have concluded this small scale copper mining agreement
with Oval with respect to the Mining licence. With the continued partnership
of Cooperlemon, the parties will be seeking to exploit the high grade material
identified in the breccia pipe and surrounding areas.  Our partners have been
proactive in constructing the plant and tailings dam together with associated
infrastructure.  The operation is within three months of production
commencement and thereafter ramp up.

 

The mine plan has been designed and we are about to commence initial blast
work and anticipate early access to ore as we deepen the pit into the main
breccia pipe area.  Within the three month period we anticipate that the
operation will be producing a copper concentrate and within six months advance
to steady state production.

 

Having teamed up with our partners Cooperlemon on the production phase of the
Mining Licence we will continue to aggressively pursue the exploration
potential identified at the Silverking exploration licence area."

 

Lukonde Makungu, President of Oval, commented

"We are pleased to have negotiated and entered into this mining agreement with
our partners Xtract.  Considering the positive and fruitful partnership we
already have in relation to the Silverking exploration project, we feel that
an integrated approach strongly aligns our interests, further strengthening
our joint future prospects.

Progress on the Silverking Mining project promises early production of copper
concentrate and with the technical and financial contribution from our
partners a successful operation.  Xtract will also focus on testing the
numerous targets in the Mining Licence area to define the size of the resource
and future mining strategy."

 

Tolayi Sikumba, Chief Executive Officer  of Cooperlemon, commented

Cooperlemon is Oval's agent in relation to the Silverking Exploration Licence.
 Negotiating and finally concluding a subsequent agreement between the
parties for the Mining Licence and the Silverking mining project not only
gratifies but also speaks to the success of the existing relationship between
the parties.

 

Highlights:

 

●    The Mining Licence has a developed infrastructure for the
commencement of mining operations and is outside the area of Large Scale
exploration Licence 26730-HQ-LEL ("Silverking Exploration Licence") which is
the subject of a separate joint venture agreement between Xtract, Oval and
Cooperlemon (entered into in April 2024).

 

●    Xtract will acquire a 35% interest in the Silverking Mining Joint
Venture for US$1,500,000 in cash payable in two instalments of US$750,000
each.

 

●    Operations

 

o There is an In-house mining engineering team on-site to monitor outcome of
the first blast and a grade control team is being onboarded to oversee day to
day mine scheduling.

 

o An expansion of crushing and milling capacity with the recent purchase by
the Company's partner of new mills and crushers to overcome any possibly
flowsheet bottlenecks.

 

o There is an opportunity to commission and optimise the processing plant with
freshly broken ground and to compare actual ore distribution against the
resource model.

 

o Further work being scheduled to test other targets and copper anomalies
within the licence including  additional drilling required on identified
targets.

 

Further details of the Silverking Mining Joint Venture:

 

Under the terms of the Silverking Mining Joint Venture , Xtract, Oval and
Cooperlemon (the "Parties") have agreed the following ("JV Agreement"):

 

Consideration: US$750,000 of the US$1,500,000 consideration to be paid by
Xtract is now due and the balance of US$750,000 is due by 31 March 2026 which
shall be settled from the Company's existing resources.

 

Operating Committee: An operating committee comprising two representatives
from Cooperlemon nominated by Oval and two representatives nominated by Xtract
(the "Mining Committee"). The chair of the Mining Committee shall be appointed
by Cooperlemon but shall not have a casting vote.

 

Future Funding: The Parties anticipate that any further funding required by
the Silverking Mining Joint Venture over and above that already provided to
date by Oval, and to be provided by Xtract in accordance with the JV
Agreement, shall be raised by the Silverking Mining Joint Venture rather than
contributed to by the joint venture Parties.

 

Distribution of surplus cashflow: Sufficient Funds shall be retained by the
Silverking Mining Joint Venture to cover three months working capital
requirements including but not limited to any taxes due ("Working Capital
Provision"). After the Working Capital Provision there shall be a distribution
of surplus cash flow on a calendar quarter basis within 30 days of the end of
each calendar quarter, unless otherwise agreed by the Mining Committee
("Quarterly Distributions"). 35% of the Quarterly Distribution will be paid to
Xtract.

 

Cooperlemon: Oval's agent: Cooperlemon has been appointed to act as Oval's
sole agent on its behalf in relation to the Mining Licence and Silverking
Mining Joint Venture.

 

Law and disputes: The JV Agreement is governed by Zambian Law and, in the
event of a dispute if this cannot be resolved by the nominated representatives
of the Parties, may be referred to arbitration in Lusaka to be conducted in
the English language by a single arbitrator pursuant to the rules of the
International Chamber of Commerce ("ICC").

 

Oval have provided customary warranties regarding the status of the Mining
Licence and the appointment of, and authority of Cooperlemon to act as Oval's
agent in relation to the Silverking Mining Joint Venture.

 

Background information on the Silverking Mining Licence project:

 

Historically the Silverking mine was established around the 1890s as a silver
mine and was known as one of the first mines in Zambia, but detailed
production and years of operation are not available. Subsequent to the
Silverking mine closing there was, other than artisanal mining, no known
exploration until 2012 when Glencore International through their local company
Mopani Copper Mines commissioned an exploration programme in and around the
main breccia pipe area which produced high grade copper and silver intercepts
which were not pursued.

 

The Mining Licence does not have a JORC compliant resource.  Xtract have
since 2024 conducted exploration in the vicinity of the main breccia pipe area
as part of its Silverking exploration activities which has confirmed the
existence of high grade copper and silver intersections.  As indicated above
the intended operations includes further work to test other targets and copper
anomalies within the Mining Licence including  additional drilling required
on identified  targets.

 

Cooperlemon has managed Oval's extensive pre-mining operations including but
not limited to preparation earth works, building a plant with a targeted
throughput of up to 500 tonnes per day, building of a tailings facility,
establishment of connections to Government power, road preparations, and site
accommodation for workers.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market
Abuse (Amendment) (EU Exit) regulations (SI 2019/310). The person who arranged
for the release of this announcement on behalf of the Company was Colin Bird,
Executive Chairman and Director.

 

 

 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

 AlbR Capital Limited                               Jon Bellis           +44 (0)207 399 9427

 Joint Broker                                       Colin Rowbury        www.novumsecurities.com
 Shard Capital Partners LLP Joint Broker            Damon Heath          +44 (0) 20 7186 9952

 

 

Qualified Person:

The technical information contained in this announcement has been reviewed,
verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK
Certified Mine Manager and Director of African Pioneer plc, with more than 40
years' experience mainly in hard rock mining.

 

Important Notice:

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and
regulated in the United Kingdom by the Financial Conduct Authority, is
acting as nominated adviser to the Company in connection with this
announcement and will not regard any other person as its client and will not
be responsible to anyone else for providing the protections afforded to the
clients of Beaumont Cornish or for providing advice in relation to such
proposals. Beaumont Cornish has not authorised the contents of, or any part
of, this document and no liability whatsoever is accepted by Beaumont Cornish
for the accuracy of any information, or opinions contained in this document or
for the omission of any information. Beaumont Cornish as nominated adviser to
the Company owes certain responsibilities to the London Stock Exchange which
are not owed to the Company, the Directors, Shareholders, or any other person.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEANADEAKKEEA



            Copyright 2019 Regulatory News Service, all rights reserved