CEO Jan Nelson
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Aim-listed Xtract Resources has successfully renegotiated the deed of assignment for the acquisition of the O'Kiep copper sulphide tailings project, in the Northern Cape, which would result in a reduced cash payment of $2.88-million, a 28% reduction from the initial $4-million payment.
Xtract would pay resource- and technology-based growth company Mineral Technologies International an immediate $250 000 in cash and a further $125 000 cash payment by May 26, as part of the acquisition.
Comprising 33.8-million tons of sulphide copper tailings material on surface across two tailings dams, the O’Kiep project had the potential to transform Xtract from a small junior to a midtier, low-cost copper producer.
Xtract had a seven-month option period as from March 27 to conclude drill work and metallurgical test work to evaluate the economic potential of the tailings material.
"We are delighted to have improved the terms on the O'Kiep project as we see it as an exciting opportunity for Xtract owing to its low entry and evaluation cost,” CEO Jan Nelson said.