23rd Feb 2015 08:18
LONDON (Alliance News) - Shares in Alexander Mining PLC rose on Monday morning after the company said it has signed heads of agreement with Compass Resources Ltd for an AmmLeach licence, along with technical and management services.
Alexander said a feasibility study has been planned to explore the use of its AmmLeach leaching technology at Compass's copper, cobalt and nickel treatment plant in Australia.
In addition, the pair say they expect to form a strategic alliance in Australia to explore the acquisition of copper resources in Australia which can be exploited using leaching technologies.
Under the terms of the AmmLeach agreement, Alexander will get an upfront cash payment of AUD825,000, along with a royalty of 2.6% on saleable metal production from the Compass plant.
It has also signed an agreement to provide consultancy services to Compass worth a total of AUD1.65 million.
"We greatly look forward to working closely together with Compass under this transformative agreement. Based on the completion of a positive AmmLeach feasibility study and production go-ahead, the project would complement our AmmLeach technology with existing high quality mining assets," said Alexander Chief Executive Officer Martin Rosser.
Alexander shares were up 29% on news of the deal to 0.710 pence, the best performer on the AIM All-Share in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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