24/08/2023

After something of a hiatus, it would appear that Xtract is on the front foot, with its latest JV agreement. Given the state of the small cap market, especially in resources, there are always concerns regarding how junior miners can fund exploration. The latest news from XTR shows us that it is leading from the front in this respect, as well as the fact  that there is still a decent appetite for the right projects in the right places. Zambia’s copper belt clearly fits the bill.

Cooperlemon Consultancy

All of this is highlighted by XTR’s move to bring in Cooperlemon Consultancy regarding its two key copper exploration licenses in Zambia. Given the scale of these projects the tie up is clearly significant. In return for investing no less than $2m, XTR will earn a 65% interest for phase one of the project which starts next month. A trade sale in the interim would mean that XTR gets 55%. Indeed, there is more to come for XTR as the second part of the deal should involve as much as $3m being injected into the licenses. Both 29123-HQ-LEL and 30459-HQ-LEL licences are regarded as being highly prospective, something which may explain the latest jump in the XTR share price.

500,000 Tonnes

One would expect further gains for XTR off the back off the newsflow which will accompany this new initiative. This is given the way that we could be treated to near surface copper – as much as 500,000 tones in phase one, as well as the possibility of cobalt. The sizzle here is also that a trade sale could really move the dial for XTR.