Xtract entered into an agreement on 19 June 2017 with Omnia a local gold producer working alluvial deposits nearby the Manica concession. The contract entails that Omnia be the contractor and operator under the supervision of Xtract/Explorator personnel. The agreement provides for a gold share between the parties and the key terms are detailed in the RNS announcements dated 19 June 2017.
The contract is for 10 years or such time as the alluvials are depleted.
The contract is for the western half of the concession and discussions are under way with other parties or the remainder of the Manica concession. The terms and conditions may vary either marginally or significantly depending on negotiations.
On 11 July 2017 Xtract Exlplorator Limitada entered into a second agreement for the eastern half of the concession alluvials. The selected contractor is Sino Minerals Investment Company Limited. The contract entails that they will have installed by the 15 October 2017 a 200t/h plant with a further 200t/h plant to be operational by the 15 January 2018. The Xtract Explorator Limitada receives some 8% of all gold revenues with gold tax paid by the contractor.