26th May 2016 10:24
LONDON (Alliance News) - Alba Mineral Resources PLC said Thursday it has exercised its option to earn into the Amitsoq graphite project in southern Greenland with Artemis Resources Ltd.
Under an agreement signed last October, Alba had an option to earn up to 70% of a graphite project near Naortalik in southern Greenland.
A renegotiation of the earn-in terms with Artemis has been completed as part of Alba opting to earn-in. Under the new terms Alba will earn a 49% interest in the project through the issue of GBP100,000 of Alba shares to Artemis and by funding a minimum of a further GBP146,000 of exploration costs be the end of the year.
Alba also be required to fund a further GBP146,000 of exploration costs on the project by the end of 2017.
George Frangeskides, who is executive chairman of Alba, also is non-executive chairman of Artemis.
"Having now secured improved terms, we intend to push forward this year to undertake significant work to enhance both our understanding of the project and the value of our investment. Future demand for graphite continues to look strong due to its long-standing industrial and commercial uses, including its role as a key component in lithium-ion batteries," said Chief Executive Officer Mike Nott in a statement.
Shares in Alba Mineral Resources were down 5.3% at 0.270 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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