JOHANNESBURG (miningweekly.com) – Aim-listed Xtract Resources has received approval from the Mozambique mining authorities to complete the acquisition of 100% of the Manica gold project, in Mozambique, from Auroch Minerals.
This was the final outstanding approval and all conditions had now been fulfilled to complete the transaction.
Xtract further reported on Tuesday that it and Auroch had again agreed to revised terms for the acquisition, following amendments to the initial terms in September last year.
The companies had, in September last year, amended the terms of the agreement, with Xtract then expected to pay $10-million for the acquisition, compared with the initial $12.5-million.
Xtract would now pay Auroch $3-million in cash on March 1; issue it 1.14-million shares valued at about $4.4-million; and pay Auroch a further $2.5-million three months after completion of the deal.
It would also settle the remaining portion of $1-million still outstanding to Manica project creditors.
"We are delighted to have received approval from the Mozambican mining authorities and to conclude the acquisition of the Manica gold project. This signifies the next step in Xtract's transformation from a small-scale miner to midtier gold producer,” said Xtract CEO Jan Nelson.