AurochMinerals Ltd. said it will not be taking any legal action againstXtract Resources Plcafter the latter agreed to pay the deferred consideration of US$2.5 million, accordingto a July 20 Auroch statement.

As part of its 100% acquisition of Manica gold project in Mozambique, Xtract was required topay US$1.3 million cash, and the remaining US$1.2 million payable in cash orshares, which Auroch chose to receive in cash, three months after the agreement.

Xtract has now agreed to make a first installment ofUS$750,000 by July 19, which is already paid, and a final payment of aboutUS$1.8 million by Aug. 12.

In May, Xtract said it will Manica, in June 2015, for US$17.5million cash to avoid spending US$35 million in startup costs for the project.