Xtract Resources' wholly-owned Mozambican subsidiary, Explorator, has negotiated significantly enhanced terms for the western portion of the alluvial concession at its Manica mining concession in Mozambique.
An addendum has been added to the June mining contract agreement, dividing the western mining area into two blocks ("M" blocks and "O" blocks).
Moz Gold Group has been appointed on an exclusive basis to conduct alluvial mining and process on the M blocks, while Omnia Mining has agreed to enter into a new agreement for the O blocks.
Colin Bird, executive chairman, said: "The amended June agreement is expected to enable a significant increase in production from the two plants which will have the effect in increasing revenue whilst reducing operating risk."
At 9:15am: (LON:XTR) Xtract Resources Plc share price was +0.1p at 3p