Manica sale to Xtract nears completion – Auroch on Mozambique gold project

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Manica sale to Xtract nears completion – Auroch on Mozambique gold project

9:10 CAT | 05 Feb 2016

In file Club of Mozambique.

ASX-listed junior Auroch Minerals on Friday said that it was advancing the sale of its Manica gold project, in Mozambique, after buyer Xtract Resources paid a $698,968 bill to the Mozambique government.

The payment was made to settle a capital gains tax that was payable on the completion of the Manica sale.

Xtract in 2015 agreed to pay $10-million for the project, which was expected to require an initial capital investment of about $28.4-million, with underground development expected to cost a further $14.8-million.

The project has a Joint Ore Reserves Committee-compliant resource of 900,000 oz, and was capable of generating revenues of $55-million a year at steady-state production, delivering about 50,000 oz/y of gold at a cash cost of $650/oz.

Auroch said on Friday that the two companies were working with the relevant Mozambican regulatory bodies to complete the sale of the Manica asset, following the finalisation of the Mines Department approval, which was expected shortly.

Source: Mining Weekly