December 5, 2016 / 6:11 AM / 2 years ago

BRIEF-eXtract says Boteti to end mining contract with Eqstra Botswana

Dec 5 (Reuters) - eXtract Group Limited

* JSE: Exg - Boteti Project Update

* Boteti has advised Eqstra Botswana of its intention to terminate opencast mining contract and to cease mining operations on 13 Dec

* Boteti further intends to withhold payment due to Eqstra Botswana for work performed in october and november

* Decision to withhold payments as a result of irreconcilable differences with regards to volumes mined

* Company categorically denies and refutes any allegations of improper conduct relating to performance of its contractual obligations

* Made all reasonable efforts to resolve issue in order to progress partnership in a mutually beneficial way

* Eqstra Botswana will seek to recoup its damages, in terms of contract, which was to endure to December 2020

* Discussions are ongoing to minimise job losses in Botswana

* Contract value for Eqstra Botswana is approximately r500 million per annum of revenue and contributed r8.5 million profit after taxation per annum Source text for Eikon: Further company coverage:

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