6th Mar 2014 15:10
LONDON (Alliance News) - Alexander Mining PLC Thursday said it has been carrying out further tests and has achieved cash payments ahead of Ebullio Group's takeover of Red Crescent Resources Ltd.
The mining and mineral processing technology company said it has been completing technical test work on a bulk sample provided from the Sivas copper, Tufanbeyli and Hakkari zinc properties in Turkey, which form part of the assets of Red Crescent.
Alexander Mining said that in readiness for the planned pilot programmes in Turkey it has been working on sample characterisation, optimisation of leaching parameters, solvent extraction trials and is currently testing particle size effects on leaching kinetics.
The company said zinc properties sample results to date have been excellent and recoveries are consistent with previous expectations, with the Sivas copper recoveries being high and showing that they can use the company's AmmLeach technology.
Ebullio Group recently signed a conditional agreement to acquire all of the assets of Red Crescent, which is scheduled for completion on March 26.
Subject to technical studies, Ebullio plans to build a low cost plant using Alexander Mining's Ammleach technology to process ore from the Red Crescent Resources zinc properties and to support high quality zinc cathode into the Turkish market.
Alexander Mining said in February that 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 the large mining portfolio in Turkey.
The company said that based on the agreement, it has now received a GBP100,000 non-refundable payment and a GBP300,000 payment apportioned to a signing bonus from Ebullio.
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 down 2.4% to 5 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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