Xtract Resources concluded a memorandum of agreement (MoA) to jointly undertake exploration works on a small-scale copper/gold mining licence, in Zambia earlier on this week. The parties hope to identify a copper/gold resource at the license within 24 months.
According to media reports, the parties have agreed to incorporate a special purpose vehicle Newco. This will be instrumental in the acquisition of to shares of Starshine Mineral Exploration, which holds the license. The Newco project will be called Matrix.
Moreover, Xtract will hold a 50% share in Newco with one of the two directors of Newco being a representative of Xtract.
Further, the parties have agreed to jointly fund an exploration works program up to US $1m in aggregate. The Matrix project scope extends for at least 3 km, with an initial target section of 800 m within the license.
In a press statement from the company, recent small-scale open pit mining recovered high-grade hand-picked copper, as well as alluvial gold nuggets. Moreover, selective grab samples taken from the pit outcrop indicate values ranging between 3.99% to 7.28% copper and 1 g/t to 3.42 g/t gold.