UK multinational mining company Xtract Resources and Oval Mining – who are acting in cooperation with mining consultant Cooperlemon Consultancy – have announced a joint venture mining company with the aim of acquiring a potential 70% stake in Zambia’s Silverking copper mine and its associated exploration license.
Xtract has the option to invest $500,000 in exploration activities within 18 months to secure a 51% stake in the exploration license for the mine. The investment from Xtract will fund general exploration activities and the expansion of a previously drilled pipe.
Colin Bird, Executive Chairman said “This agreement is consistent with the Company’s stated mission of acquiring exploration resources which have significant copper showings, considerable upside potential and occur in proximity to current or potential mines.
The mine – previously explored by Glencore – is estimated to hold 268,971 tons of copper and is in close proximity to the large-scale Kitoumba deposits.
Xtract holds the option to further invest $1 million, increasing its ownership stake in the license to 71%, if the joint venture discovers deposits exceeding 300,000 tons.
An option to invest an additional $1 million and increase stakes in the license to 71% in the event the joint venture discovers deposits above 300,000 tons is available for Xtract as part of the agreement. The UK company will provide funding to develop a small mining project if copper resources discovered fall short of 300,000 tons.
