In 2025 Xtract entered into a new joint venture partnership with Moroccan-based minerals exploration and development company Wildstone SARL.
Wildstone is developing small-scale mining opportunities in copper, silver and antimony within Morocco and Xtract acquired an initial 50% shareholding in the company for a payment of US$500,000.
Wildstone has 15 non-contiguous licences located in Central Morocco and holds the rights for the exploration and extraction of copper, silver and antimony. The licences are valid until October 2026, pending any future renewals, and have received limited exploration to date. The first phase of exploration will concentrate on drilling of newly established targets and, based on results, appropriate projects will be advanced into either small-scale production or in the course of time evaluated for large scale potential.
Small-scale production is envisaged to commence within 9 months of the transaction closing, subject to receipt of necessary mining licences and permits, and conclusion of suitable agreements with artisanal miners. Wildstone intends that ore will be processed using basic equipment currently in use for similar sites in Morocco, and if the exploration is successful and it is deemed appropriate then a more sophisticated plant will be built that will be designed relative to the metallurgical characteristics and the size of the orebody.
Further Detail on Joint Venture and Collaboration Agreement
On 24 February 2025, Xtract entered into an exclusive collaboration agreement with Wildstone. Xtract acquired an initial 50% interest for an initial cash payment of US$500,000 and has the option to acquire an additional 30% by phased payments of US$900,000 over the next three years with the aim of defining one, or more, JORC resources.
The parties anticipate that within 6 months of signing the agreement small scale mining will commence that will utilise Wildstone’s own contractors. Capital funding for the small-scale development of US$200,000 will be provided by Xtract which will recover the initial capital by being paid 75% of free cashflow. Xtract shall be responsible for all small-scale development mining funding until such time as the operation is demonstrating a surplus income over expenditures (including sustaining and maintenance capital). On full capital repayment, Xtract will be entitled to 60% of all profits.
The small-scale development will continue during the exploration phase and will be replaced or may run concurrently if the potential for a larger more sophisticated processing plant is identified.
For the purposes of defining potential for a larger scale development, the criteria to be used is not less than 5 years mine life at a minimum annual throughput of 150,000 tonnes, with a DCF model demonstrating a payback of not more than 18 months and a return on investment not less than 20%.
Xtract will be expected to fund 100% of the larger scale development, anticipated to be US$1million on the plant design, construction, implementation and commissioning. On commencement of production, Xtract will receive 60% of cashflow for capital recovery, the remainder being shared 70% to Xtract and 30% to the existing shareholders in Wildstone. This arrangement will continue for 18 months, or until the capital is fully repaid, whichever is the shorter. After the completion of the 18-month period, the profits will be shared 80% to Xtract and 20% to the existing shareholders.