Xtract Resources receives approval for Manica acquisition

The British based company Xtract Resources has received approval from the Mozambican government for the acquisition of the Manica Gold Project from the Australian company Auroch Minerals.The Manica Gold Project is situated four kilometres north of the town of Manica, near the Zimbabwe border. The main deposit, known as Fair Bride, is estimated to hold 923,200 ounces of gold. However, mining will recover just three grammes of gold for every tonne of material processed.Under the terms of the sale, Xtract will pay Auroch just under ten million dollars in cash and shares and take on the responsibility for a further million dollars worth of debts.The sale will also result in Xtract Resources paying the Mozambican Tax Authority (AT) 700,000 dollars in capital gains tax.According to Xtract’s chief executive Jan Nelson, “we are delighted to have received approval from the Mozambican mining authorities and to conclude the acquisition of the Manica gold project. This signifies the next step in Xtract’s transformation from a small-scale miner to mid-tier gold producer”.The price of gold is currently about 1,240 US dollars an ounce.