Xtract Resources : Chepica Earn-in Option

Chepica Earn-in Option

Regulatory Story

Xtract Resources plc - XTR

Chepica Earn-in Option

Released 07:00 13-Apr-2016

RNS Number : 9993U Xtract Resources plc 13 April 2016

13 April 2016 Xtract Resources Plc ("Xtract" or "the Company") Chepica Earn-in Option

Xtract Resources Plc (AIM: XTR), the gold mining and development Company, announces that it is in the final stages of re-negotiating the payments under the existing earn-in option agreement ("Option Agreement") for the Chepica gold and copper mine in Chile ('Chepica') and has agreed with the option holder to the deferment of the payment which was due in March 2016, whilst revised terms for the Option Agreement are being negotiated.

On 12 November 2015, the Company announced that it had re-negotiated the terms of the Option Agreement and all payments due in 2015 had been deferred until 2016 with a payment of US$385,000 due in March 2016, followed by a further nine monthly instalments of US$385,000, totalling US$3.85 million, with the last payment to be made in December 2016.

The basis for the revisions to the Option Agreement have been agreed in principle with the option holder and the Company will provide an update once an agreement is formalised. The terms of the Option Agreement are to be amended in order to provide the Company with additional flexibility from a working capital perspective.

Enquiries:

Xtract Resources Plc	Jan Nelson, CEO	+44 (0)20 3416 6471
Cenkos Securities plc	Derrick Lee Beth McKiernan	+44 (0)131 220 6939
Beaufort Securities	Jon Belliss	+44 (0)207 382 8300
St James's Corporate Services	Phil Dexter	+44 (0)20 7796 8647 +44 (0)7798 634398
Gable Communications	Justine James xtract@gablecommunications.com	+44 (0)20 7193 7463 +44 (0) 7525 324431

This information is provided by RNS

The company news service from the London Stock Exchange END