Long stop date for Xtract’s disposal of Mozambique project extended

16th February 2024 By: Tasneem Bulbulia - Senior Contributing Editor Online

Aim-listed Xtract Resources says the long stop date in relation to the disposal of its entire interests in the Manica gold project, in Mozambique, has been extended from February 15 to February 23 to allow for the completion of certain administrative matters.

A further announcement will be made in due course.

In January, Xtract said it had agreed terms for the disposal of the Manica project, entering into the conditional MMP agreements with its Mozambique partner, MMP and parties related to MMP.

This comprised a share purchase agreement to sell Xtract’s 23% net profit share interest in the project to buyers for up to $15-million.

It also entailed the settlement and restructuring agreement in relation to the termination of Xtract’s mining collaboration agreement with MMP dated May 28, 2019, in relation to the project under which the Xtract parties are to be paid $3.325-million in cash to settle all monies due under the agreement from MMP to Xtract and Explorator, Xtract’s local Mozambique subsidiary, of which $2-million has already been paid; and to terminate the mining collaboration agreement.

On February 13, the resolution to approve the disposal of the company’s entire interests in the Manica project was approved by shareholders at a general meeting.

Following completion of the disposal, the company will remain an operating minerals company under the Aim rules focusing on its material minerals interests in its two large-scale, early-stage exploration copper projects in Northeast Zambia and the Bushranger copper project in Australia.