Xtract will earn a 65% interest in the joint venture by funding exploration expenditure over an initial two-year period (“Phase 1”) on the Licences of not less than US$2 million
Zambian exploration licences joint venture. (Credit: Khusen Rustamov from Pixabay)
The Board of Xtract Resources Plc (“Xtract” or the “Company”) is pleased to announce that the Company has entered into a joint venture agreement with Cooperlemon Consultancy Limited in relation to the exploration for copper at large scale exploration licenses 29123-HQ-LEL and 30459-HQ-LEL in Northwest Zambia (the “Licences”).
Colin Bird Executive Chairman said: ” The two licences are well situated within the Western Foreland geological district that hosts potential Kamoa style mineralisation as confirmed by recent exploration and drilling on nearby licences. It is our intent to commence field work with the objective of identifying potential drill targets for Kamoa style mineralisation and also for Kolwezi style mineralisation which has the potential for near surface copper and possibly cobalt mineralisation. We are very excited about the prospects for the joint venture and look forward to updating the market on exploration activities.”
Joint Venture Agreement
Xtract yesterday entered into a joint venture agreement with Cooperlemon Consultancy Limited (“Cooperlemon”) in relation to the exploration for copper at large scale exploration licenses 29123-HQ-LEL and 30459-HQ-LEL in Northwest Zambia (the “Licences”). Under the joint venture agreement (“JV Agreement”), Xtract has agreed the following key terms:
Earn-in and Phase 1 exploration budget: Xtract will earn a 65% interest in the joint venture by funding exploration expenditure over an initial two-year period (“Phase 1”) on the Licences of not less than US$2 million. Exploration is expected to commence in September 2023, and will comprise both physical activity within the Licence boundaries (including but not limited to mapping, soil geochemistry, geophysics and drilling), and desktop studies, laboratory analysis and interpretation of data and results. Xtract anticipates funding this exploration expenditure from existing resources and current ongoing operational activities.
If the Phase 1 exploration results are successful and prove the continuity of mineralisation at grades suggesting the potential for the future development of a Mineral Resource of not less than 500,000 tonnes of contained copper, consistent with economic recovery at the depth of discovery with a minimum internal rate of return of not less than 25% and a payback period not exceeding 42 months (including the recovery of capital expenditure), then there will be a second two year exploration period (“Phase 2”).
Licence No: 29123-HQ-LEL, which comprises 88,149 hectares and expires on 7 September 2025, is held by Oval Mining Limited (“Oval”). The application for Licence 30459-HQ-LEL, which comprises 19,600 hectares and which has been approved for issue by the Zambian Mining Cadastre, is held by Far North Enterprises Limited (“Far North”). Both licences are located in North-West Zambia adjacent to the Democratic Republic of Congo (DRC) border. Oval and Far North have each agreed with Xtract to be bound by the terms and the conditions of the JV Agreement with Cooperlemon (who is acting on their behalf) as though they were a party to the JV Agreement.
Source: Company Press Release