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Mining Capital
EPIC: XTR
Market: AIM
52-week High/Low: 11.28p / 1.60p
Sector: General Mining
Market Cap: 9.73M

Xtract Resources (AIM: XTR) is a resource, development and mining company whose focus is and will be to acquire brown field resource projects with a view to release value for its shareholders. The projects targeted will be in regions where mining and infrastructure is prevalent and the mining regulations transparent.

Xtract Resources PLC

www.xtractresources.com

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Big picture - Why invest in Xtract Resources PLC

Xtract Resources PLC Snapshot

Strategy

The strategy is to identify resource projects which satisfy the criteria of reasonably advanced, good mining jurisdiction and economic projections which suggest a hurdle rate of return in excess of 25%.

The current focus is on the Manica mine in Mozambique which satisfies all of the above. We intend to release the value of this project by feasibility study during the remainder of 2016. Concurrently we will proactively and reactively assess how best to transfer opportunity to shareholder value.

We continue to review all options for future projects and maximising current value.

 

The Right People

Xtract aims to source talented individuals who can contribute at board and senior management levels, and who have the necessary qualifications, experience, enterprise and motivation to develop and grow early stage assets and businesses. Xtract expects to maintain a small core executive management team on a full time basis and to use its wide network of industry associates to access the necessary skill sets and experience required on a part time or when required basis. Where specific expertise is needed, acknowledged expert consultants are retained. Xtract seeks to develop relationships with internationally recognised industry partners who are best placed to progress early stage assets and businesses along the value chain.

 

 

Manica Gold Project

Mozambique

Located 4km north of Manica town, 270km west-northwest of the

city of Beira, Mozambique

Set to produce 35koz per annum (500kt at 2.62 g/t recovered) at

cash cost of US$556/oz

 

 

Manica Key Features

  • 1.262 moz SAMREC compliant Au Resources (782koz measured and indicated)
  • Low cost, near-term ready-to-build production
  • Metallurgical risk solved by fine grinding and pressure oxidation
  • Additional nearby prospects for further exploration success, namely: Guy Fawkes, Boa Esperanza, Dot’s Luck, all have declared resources
  • Publically released information outlines a mine plan based on Fair Bride only producing approx. 215Koz over 7 years
  • Further optimisation is possible and ongoing

For more information, please click here

 

 

Manica Alluvials

Mozambique

Xtract entered into an agreement on 19 June 2017 with Omnia a

local gold producer working alluvial deposits nearby the

Manica concession

The contract is for 10 years or such time as the alluvials are depleted

On 11 July 2017 Xtract Exlplorator Limitada entered into a second

agreement for the eastern half of the concession alluvials

Manica Alluvials

Xtract entered into an agreement on 19 June 2017 with Omnia a local gold producer working alluvial deposits nearby the Manica concession. The contract entails that Omnia be the contractor and operator under the supervision of Xtract/Explorator personnel. The agreement provides for a gold share between the parties and the key terms are detailed in the RNS announcements dated 19 June 2017.

The contract is for 10 years or such time as the alluvials are depleted.

The contract is for the western half of the concession and discussions are under way with other parties or the remainder of the Manica concession. The terms and conditions may vary either marginally or significantly depending on negotiations.

On 11 July 2017 Xtract Exlplorator Limitada entered into a second agreement for the eastern half of the concession alluvials. The selected contractor is Sino Minerals Investment Company Limited. The contract entails that they will have installed by the 15 October 2017 a 200t/h plant with a further 200t/h plant to be operational by the 15 January 2018. The Xtract Explorator Limitada receives some 8% of all gold revenues with gold tax paid by the contractor.

What are Alluvial Deposits?

Alluvial deposits are the natural concentration of heavy minerals caused by the effect of gravity on moving particles. Nature various actions known as weathering can and did dislodge gold from its hard rock containment. Once the gold is liberated it migrates by gravity and water flow into larger or subsidiary streams. The net effect of this show migration into streams is concentration of the gold into sometimes valuable gold ore bodies.

The presences of gold nuggets suggest that the occurrence is close to the primary source. The finer the gold the further the occurrence might be from the source. The more rounded the gold particles the stronger the suggestion that the gold has travelled further.

Manica has a distribution of particles size with high frequency of nuggets which is a good sign for primary hard rock exploration.

 

Other Assets

The remaining oil and gas interests are a holding a in Global Oil Shale Group Limited (‘GOs’).

In December 2012, Xtract acquired the Australian Julia Creek Oil Shale in return for 6.0 million shares in GOS, with a further 1.5 million in the event of an IPO, which the Board views as a valuable balance sheet asset.

The disposal to GOS was completed in December 2012 and GOS is working to consolidate its position within the local and national government jurisdictions. GOS has advanced technical work and put in place a short-term programme designed to add significant incremental value prior to a proposed public market listing. GOS also continues to advance the other oil shale projects within its oil shale portfolio.

In July 2014, Xtract sold 5 million shares for a total consideration of £1,188,679. Xtract retains 2,371,365 shares and will be allotted a further 1.5 million shares immediately prior to a listing of GOS shares on a stock exchange or market, as per the original agreement.

Board of Directors

Colin Bird - Executive Chairman

Colin Bird is a chartered mining engineer with multi commodity mine management experience in Africa, Spain, Latin America and in the Middle East. He has been the prime mover in a number of public listings in the UK, Canada and South African and is currently Chief Executive Officer of Tiger Resource Finance PLC, AIM quoted Galileo Resources PLCA and Non-Executive Chairman of Jubilee Platinum PLC.

He has been responsible for founding a number of PLC’s which have achieved mid-cap status and was the founder of Kiwara PLC which discovered the large copper project Kalumbila currently being developed by First Quantum Minerals Ltd. a US$ 11 billion quoted company.

Colin was appointed Executive Chairman during August 2016.

Peter Moir - Non-executive Director

Peter’s qualifications include B.Sc. Civil Engineering and M.Eng. Petroleum Engineering.

He is a Chartered Engineer in the UK and has more than 30 years experience in technical, operational and commercial aspects of the Exploration and Production business.

Joel Silberstein - Finance Director

Joel joined the Company as Chief Financial Officer in June 2013.  Prior to this Joel held the position of Group Controller and Vice President Finance of Toronto Stock Exchange quoted European Goldfields Limited, where he supported the executive team in growing a mining concern from exploration through development phases until the Company was taken over by Eldorado Gold Corporation. He has Honours Bachelor of Accounting Science degree from the University Of South Africa and qualified as a chartered accountant with Mazars, Cape Town in 2002.

 

Significant shareholdings

As at 31 August 2017 the Company is aware of the following significant holdings (over 3%) of voting rights in its share capital:

 
 

 

Name of holder

No. of ordinary shares

%age of voting rights in issued capital

   
 

 

Hargreaves Landsdown Asset Mgt

46,431,423

17.70

   
 

 

Halifax Share Dealing

27,121,904

10.34

   
 

 

Barclays Wealth and Investment Management (UK)

20,978,733

8.00

   
 

 

TD Direct Investing

20,296,309

7.74

   
 

 

Interactive Investor Sharedealing

20,063,892

7.65

   
 

 

Jarvis Investment Management

12,156,302

4.63

   
 

 

HSBC Private Bank (UK)

11,916,451

4.54

   
 

 

SimplyStockbroking

8,043,759

3.07

 

Xtract Resources Plc Registered address:
1st Floor 7/8 Kendrick Mews
London SW7 3HG, United Kingdom
T: +44 (0) 20 3416 6471
F: +44 (0) 20 7589 7806
E: [email protected]

Nominated Adviser:

Beaumont Cornish Limited
2nd Floor
Bowman House
29 Wilson Street
London, EC2M 2SJ

Tel: +44 (0) 20 7628 3396
Fax: +44 (0) 20 7628 3393
Website: http://www.beaumontcornish.com/
E-mail: [email protected]

    
 
Broker:

Beaufort Securities Ltd
131 Finsbury Pavement
London
EC2A 1NT

T: +44 (0) 20 7382 8300
F: +44 (0) 20 7382 8400
E: [email protected]
W: www.beaufortsecurities.com

 
   
 
Solicitors:

Fladgate LLP
16 Great Queen Street
London
WC2B 5DG

T: +44 (0) 20 3036 7000
F: +44 (0) 20 3036 7600
E: [email protected]
W: www.fladgate.com

 
   
 
Auditors:

Chapman Davis LLP
2 Chapel Court
London
SE1 1HH

T: + 44 (0) 20 357 6008
F: + 44 (0) 20 357 6159
E: [email protected]
  
   
 
Registrar:

Capita Asset Services
The Registry, 34 Beckenham Road
Beckenham, Kent
BR3 4TU
T: +44 (0) 871 664 0300 (calls cost 10 pence per minute plus network extras)
The Share Portal can be accessed at https://www.capitashareportal.com/forms/Welcome.asp
W: www.capitaassetservices.com/default.cshtml

 
 
Bankers:

NatWest
2nd Floor
180 Brompton Road
Knightsbridge
London
SW3 1HL

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