Xtract Resources (LON:XTR) CEO Jan Nelson tells Proactive Investors about plans to build the Manica Gold licence into one of the lowest cost gold producers in the area. “What it does for us is it gives the company critical mass.. it really is a game changer for the company. It will give us, when it is in production, EBITDA $27mln over a life of fifteen years that will pay back the acquisition and the capital costs in less than three years” he said.
Nelson said he has been involved in tracking the progress of this asset for a long time, knows it extremely well and has a high level confidence in the project. The time was right for all parties. “It was always acknowledged that (the owners) are explorers and not really builders of mines and we have been in discussions with them over the last year in terms of potentially acquiring the asset, but I think a year ago we were not in the position to raise this kind of capital that we are buying the mine with,” he said