XTRACT Resources on-and-off affair with the Manica gold project in Mozambique is back on again with the company re-acquiring ownership after the deal struck in May this year to sell the project fell through because of non-payment by the purchasers.
AIM-listed Xtract sold Manica to Nexus Capital Limited and Mineral Technologies International for $17.5m of which $2.5m had to be paid by August 12, but Xtract reported on August 17 that the money had not been received.
According to Xtract chairman, Colin Bird, the deal has now lapsed “… due to certain conditions precedent not being met and will not be effected”.
Bird said Xtract had now commissioned the final leg of the environmental study which is required to complete the full bankable feasibility for building a mine at Manica. He added: “By the end of November 2016, I hope to report that Xtract will have in place full ownership of a gold mining prospect with a high return, bankable feasibility study in place which will provide us with flexibility when assessing our strategic options”.
Xtract’s interim report – also published on September 30 – revealed the company has taken a £2.34m net impairment charge against the Chepica copper/gold project in Chile which Xtract has decided to discontinue.
Bird rejected the comments made by former CEO, Jan Nelson, to Miningmx that the decision to drop Chepica was the reason he decided to resign from Xtract with immediate effect on September 13.
“Jan told the board he was resigning for personal reasons so the board was amazed to read subsequently that it was because of Chepica. The decision to stop Chepica was taken after he had left,” said Bird. Asked for a response to Bird’s comments Nelson repeated to Miningmx that: “Chepica is the reason that I quit”.
