LONDON (Alliance News) - Alexander Mining PLC on Wednesday said Deep-South Resources Inc has completed its acquisition of 75% of the Kapili Tepe polymetallic project in Turkey.
Shares in the mining and mineral processing technology company were up 17% at 0.068 pence in morning trade.
In June 2018, Alexander and Deep-South signed a licence agreement under which Deep South would acquire a licence for the possible use of Alexander's leaching technologies at Kapili Tepe. The deal was conditional on Deep-South completing the 75% acquisition.
Alexander will receive a 2.5% royalty on gross saleable metal products produced from a potential mine at Kapili Tepe provided they are obtained using Alexander's leaching technologies. Once the acquisition is complete, Deep-South will issue 500,000 of its own shares to Alexander.
The Kapili Tepe project is mostly a copper mineralised altered and brecciated shear zone, and also contains nickel, cobalt, and gold. It consists of one mining licence and two exploration licences, with the licenced area covering around 5,240 hectares.
Deep-South intends to delineate a NI 43-101 compliant mineral resources estimate before, depending on the result, proceeding to a preliminary economic assessment. This would then be followed by a pre-feasibility study for possible mine construction.
For two years after Deep-South formally commits to a preliminary economic assessment, a USD7,5000 monthly technical consultancy services retainer fee must be paid in advance to Alexander.
"We are delighted that Deep South Resources has completed its acquisition of 75% of the Kapili Tepe project and we look forward to working closely together with DSR on this exciting project, which has significant potential for the use of our leaching technologies," said Alexander Chief Executive Martin Rosser.
