Xtract Resources and Nexus Capital, previously known as Mineral Technologies International, on Tuesday agreed to revise the terms of a collaboration agreement for the exploitation of alluvial gold deposits at Xtract’s Manica deposit, in Mozambique.
The parties initially entered into the collaboration agreement in February 2017 and had already introduced some amendments in June 2017.
The latest revision of the agreement, which is effective June 1, 2018, will result in Xtract and Nexus equally sharing net gold production, while Nexus will contribute $20 000 a month towards the costs and expenses of the project. It will also be responsible for 50% of any land compensation costs.
Further, Xtract will pay Nexus $76 000 in settlement of fees accrued between January 1 and May 31.
The new agreement provides Xtract with more favourable terms and potential additional income with minimal operating risk, the company said.
“The new agreement is the result of prolonged negotiations between Nexus and Xtract targeted towards an equitable agreement which reflects concession ownership and our responsibilities. This agreement has removed key aspects of negative control by Nexus and remains in the general interest of both parties,” said Xtract executive chairperson Colin Bird.