Silverking Mining Licence Joint Venture

Xtract Resources plc

03 February 2026

 

3 February 2026

Xtract Resources Plc

("Xtract" or the "Company")

Silverking Mining Licence Joint Venture

The Board of Xtract Resources Plc ("Xtract" or the "Company") announce that they have agreed with Oval Mining Limited ("Oval") the holder of Small Scale Mining Licence 34544-HQ-SML in the Mumbwa District of Zambia (the "Mining Licence") and Cooperlemon Consultancy Limited ("Cooperlemon") to enter into a new joint venture for the development of copper mining operations at the Mining Licence ("Silverking Mining Joint Venture") to produce copper concentrate.  

Colin Bird, Executive Chairman of Xtract, commented

"We are pleased to have concluded this small scale copper mining agreement with Oval with respect to the Mining licence. With the continued partnership of Cooperlemon, the parties will be seeking to exploit the high grade material identified in the breccia pipe and surrounding areas.  Our partners have been proactive in constructing the plant and tailings dam together with associated infrastructure.  The operation is within three months of production commencement and thereafter ramp up.

The mine plan has been designed and we are about to commence initial blast work and anticipate early access to ore as we deepen the pit into the main breccia pipe area.  Within the three month period we anticipate that the operation will be producing a copper concentrate and within six months advance to steady state production.

Having teamed up with our partners Cooperlemon on the production phase of the Mining Licence we will continue to aggressively pursue the exploration potential identified at the Silverking exploration licence area."

Lukonde Makungu, President of Oval, commented

"We are pleased to have negotiated and entered into this mining agreement with our partners Xtract.  Considering the positive and fruitful partnership we already have in relation to the Silverking exploration project, we feel that an integrated approach strongly aligns our interests, further strengthening our joint future prospects. 

Progress on the Silverking Mining project promises early production of copper concentrate and with the technical and financial contribution from our partners a successful operation.  Xtract will also focus on testing the numerous targets in the Mining Licence area to define the size of the resource and future mining strategy."

Tolayi Sikumba, Chief Executive Officer  of Cooperlemon, commented

Cooperlemon is Oval's agent in relation to the Silverking Exploration Licence.  Negotiating and finally concluding a subsequent agreement between the parties for the Mining Licence and the Silverking mining project not only gratifies but also speaks to the success of the existing relationship between the parties. 

Highlights:

●    The Mining Licence has a developed infrastructure for the commencement of mining operations and is outside the area of Large Scale exploration Licence 26730-HQ-LEL ("Silverking Exploration Licence") which is the subject of a separate joint venture agreement between Xtract, Oval and Cooperlemon (entered into in April 2024).

●    Xtract will acquire a 35% interest in the Silverking Mining Joint Venture for US$1,500,000 in cash payable in two instalments of US$750,000 each.

●    Operations

o There is an In-house mining engineering team on-site to monitor outcome of the first blast and a grade control team is being onboarded to oversee day to day mine scheduling.

o An expansion of crushing and milling capacity with the recent purchase by the Company's partner of new mills and crushers to overcome any possibly flowsheet bottlenecks.

o There is an opportunity to commission and optimise the processing plant with freshly broken ground and to compare actual ore distribution against the resource model.

o Further work being scheduled to test other targets and copper anomalies within the licence including  additional drilling required on identified  targets.

Further details of the Silverking Mining Joint Venture:

Under the terms of the Silverking Mining Joint Venture , Xtract, Oval and Cooperlemon (the "Parties") have agreed the following ("JV Agreement"):

Consideration: US$750,000 of the US$1,500,000 consideration to be paid by Xtract is now due and the balance of US$750,000 is due by 31 March 2026 which shall be settled from the Company's existing resources.

Operating Committee: An operating committee comprising two representatives from Cooperlemon nominated by Oval and two representatives nominated by Xtract (the "Mining Committee"). The chair of the Mining Committee shall be appointed by Cooperlemon but shall not have a casting vote.  

Future Funding: The Parties anticipate that any further funding required by the Silverking Mining Joint Venture over and above that already provided to date by Oval, and to be provided by Xtract in accordance with the JV Agreement, shall be raised by the Silverking Mining Joint Venture rather than contributed to by the joint venture Parties.

Distribution of surplus cashflow: Sufficient Funds shall be retained by the Silverking Mining Joint Venture to cover three months working capital requirements including but not limited to any taxes due ("Working Capital Provision"). After the Working Capital Provision there shall be a distribution of surplus cash flow on a calendar quarter basis within 30 days of the end of each calendar quarter, unless otherwise agreed by the Mining Committee ("Quarterly Distributions"). 35% of the Quarterly Distribution will be paid to Xtract.

Cooperlemon: Oval's agent: Cooperlemon has been appointed to act as Oval's sole agent on its behalf in relation to the Mining Licence and Silverking Mining Joint Venture.

Law and disputes: The JV Agreement is governed by Zambian Law and, in the event of a dispute if this cannot be resolved by the nominated representatives of the Parties, may be referred to arbitration in Lusaka to be conducted in the English language by a single arbitrator pursuant to the rules of the International Chamber of Commerce ("ICC").

Oval have provided customary warranties regarding the status of the Mining Licence and the appointment of, and authority of Cooperlemon to act as Oval's agent in relation to the Silverking Mining Joint Venture.

Background information on the Silverking Mining Licence project:

Historically the Silverking mine was established around the 1890s as a silver mine and was known as one of the first mines in Zambia, but detailed production and years of operation are not available. Subsequent to the Silverking mine closing there was, other than artisanal mining, no known exploration until 2012 when Glencore International through their local company Mopani Copper Mines commissioned an exploration programme in and around the main breccia pipe area which produced high grade copper and silver intercepts which were not pursued. 

The Mining Licence does not have a JORC compliant resource.  Xtract have since 2024 conducted exploration in the vicinity of the main breccia pipe area as part of its Silverking exploration activities which has confirmed the existence of high grade copper and silver intersections.  As indicated above the intended operations includes further work to test other targets and copper anomalies within the Mining Licence including  additional drilling required on identified  targets.

Cooperlemon has managed Oval's extensive pre-mining operations including but not limited to preparation earth works, building a plant with a targeted throughput of up to 500 tonnes per day, building of a tailings facility, establishment of connections to Government power, road preparations, and site accommodation for workers.  

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law pursuant to the Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310). The person who arranged for the release of this announcement on behalf of the Company was Colin Bird, Executive Chairman and Director.

Xtract Resources Plc	Colin Bird, Executive Chairman	[phone] www.xtractresources.com
Beaumont Cornish Limited Nominated Adviser and Joint Broker	Roland Cornish Michael Cornish Felicity Geidt	[phone] www.beaumontcornish.co.uk
AlbR Capital Limited Joint Broker	Jon Bellis Colin Rowbury	[phone] www.novumsecurities.com
Shard Capital Partners LLP Joint Broker	Damon Heath	[phone]

Qualified Person:

The technical information contained in this announcement has been reviewed, verified, and approved by Colin Bird, CC.ENG, FIMMM, South African and UK Certified Mine Manager and Director of African Pioneer plc, with more than 40 years' experience mainly in hard rock mining.

Important Notice:

Beaumont Cornish Limited ("Beaumont Cornish"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in connection with this announcement and will not regard any other person as its client and will not be responsible to anyone else for providing the protections afforded to the clients of Beaumont Cornish or for providing advice in relation to such proposals. Beaumont Cornish has not authorised the contents of, or any part of, this document and no liability whatsoever is accepted by Beaumont Cornish for the accuracy of any information, or opinions contained in this document or for the omission of any information. Beaumont Cornish as nominated adviser to the Company owes certain responsibilities to the London Stock Exchange which are not owed to the Company, the Directors, Shareholders, or any other person.

 

END