Xtract agrees changes to Nexus collaboration agreement
Source - SMW
Xtract Resources has confirmed that the Company and Nexus Capital have agreed to revise terms of a collaboration agreement for the exploitation of alluvial gold deposits at Manica.
The Company announced the following changes:
- Addendum to collaboration agreement signed between the Company and Nexus
- Parties will use their best endeavours to procure that each contract miner pays an entry fee
- In the event no entry fees are paid, the obligation for Nexus to receive first $US1 million of entry fees, which was previously mandatory, will lapse
- Provided at least 2 Alluvial mining agreements are signed no later than 1 December 2017, all previous agreements with Nexus will lapse
- The Collaboration Agreement provides Xtract with potential for significant long term income with minimal operating risk Colin Bird, Chairman said:
"The addendum to the Collaboration Agreement, represents a practical working arrangement between the Company and Nexus. The alluvial mining contracts may differ considerably in structure and it was therefore deemed appropriate to modify the terms of the agreement to allow the parties to enter into various contracts.The Company will put in place technical monitoring systems to ensure that the appropriate controls are in place to ensure the Company receives its due income. The Company is currently negotiating the eastern part of the gold alluvial deposit with other contract miners as well as reviewing financing alternatives for the hard rock deposit".
At 1:46pm: (LON:XTR) Xtract Resources Plc share price was -0p at 0.01p