LONDON (Alliance News) - Alexander Mining PLC Monday said it has signed a major commercial licence, financing and consultancy agreement with hedge fund Ebullio Group.
The mining and mineral processing technology company said that it will receive cash proceeds totalling GBP2.5 million royalties as it licenses its AmmLeach technology to Ebullio Commodities Ltd, part of the Ebullio Group, for use as it develops a large mining portfolio in Turkey.
Ebullio Group has signed a conditional agreement to acquire all of the assets of Red Crescent Resources Ltd, a specialist mining group with a range of base metals operations in Turkey, which is scheduled for completion on March 26.
Alexander said the acquisition has significantly accelerated the first commercial adoption of its Ammleach technology in Turkey and later in other countries.
Subject to technical studies, Ebullio plans to build a low cost plant using the Ammleach technology to process ore from the Red Crescent Resources zinc properties and to support high quality zinc cathode into the Turkish market.
Ebullio wants to create the most efficient and lowest cost producer of copper and zinc in Europe and to become the largest producer in Turkey by the year 2023, Alexander said.
Alexander's AmmLeach process uses ammonia-based chemistry to selectively extract copper, zinc, nickel and cobalt from ore deposits, as well as others.
Ebullio Group currently owns a 11.85% shareholding in Alexander via the Ebullio Resources Fund.
Alexander Mining shares were up 2.3% to 5.50 pence Monday morning, having touched 6.50p after the open.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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