(Alliance News) - Alexander Mining PLC on Wednesday said it will dispose of its MetaLeach Ltd subsidiary and change strategy.
Shares in Alexander Mining dropped by a third to 0.025 pence in London in morning trade following the announcement.
Alexander Mining said it conducted an operational review and "concluded that it is no longer in shareholders' interests for the company to continue to provide financial support indefinitely for its mineral processing technology activities".
These activities are carried out by MetaLeach, a wholly owned subsidiary of Alexander Mining, so it will dispose of the subsidiary.
This turn Alexander Mining into a cash shell, as defined by AIM rule 15, at which point the company will seek "to complete a suitable reverse takeover".
As a cash shell, Alexander will be required to undertake a reverse takeover within six months of its general meeting or else its share will be suspended. If not acquisition is made after six months of suspension, then Alexander's AIM shares will be cancelled.
By Anna Farley; annafarley@alliancenews.com
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