TIDMXTR

RNS Number : 2742L

Xtract Resources plc

30 September 2016

30 September 2016

This announcement contains inside information

Xtract Resources Plc

Manica Update

The Board of Xtract Resources Plc ("Xtract" or the "Company") announces that, further to the notification by the Company on 17 August 2016, the conditional sale and purchase agreement between the Company, Nexus Capital Limited and Mineral Technologies International Limited ("MTI") through which the Company was to dispose of its 100% interest in the Manica gold project for US$17.5 million, has lapsed due to certain conditions precedent not being met and will therefore not be effected.

The Company confirms that its discussions with MTI, regarding revisions to the existing joint venture agreement between the parties, to mine the alluvial gold deposit at Manica, are progressing well and the Company anticipates that a satisfactory conclusion for both parties can be announced soon.

Colin Bird, Executive Chairman, said: "The ending of the sale and purchase agreement brings clarity and certainty to our ownership of the Manica gold project. Manica is one of the more advanced low cost open pit projects in Southern Africa and is well placed in the population of emerging gold mines. The discussions with MTI, regarding the alluvial project are ongoing and progressing satisfactorily. The Company has commissioned the final leg of the environmental study which is required to complete the full bankable feasibility study. We anticipate delivery of the bankable feasibility study no later than the end of November 2016, which will provide us with flexibility when assessing our strategic options".

Enquiries:

 
 Xtract Resources       Colin Bird, Executive    +44 (0)20 
  Plc                    Chairman                 3416 6471 
 Cenkos Securities      Derrick Lee              +44 (0)131 
  plc                    Beth McKiernan           220 6939 
                                                 +44 (0)207 
 Beaufort Securities    Jon Belliss               382 8300

This information is provided by RNS

The company news service from the London Stock Exchange

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September 30, 2016 02:01 ET (06:01 GMT)

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