27th Aug 2009 12:16
27 August 2009
Alexander Mining plc
("Alexander" or the "Company")
Agreement to Develop Mining Projects with MetaLeach's Proprietary Leaching Technologies
Alexander Mining plc is pleased to report that its wholly owned subsidiary MetaLeach Limited ("MetaLeach") has signed a twelve months commercial agreement with RPT Resources Ltd. ("RPT", listed on the TSX Venture Exchange - code RPT ). The principal features of the agreement are as follows:
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RPT to pay MetaLeach a consultancy fee of US$300,000 per annum for information regarding potential mineral properties which may be suitable for the use of MetaLeach's proprietary leaching technologies. |
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RPT can select properties for acquisition and will be responsible for funding initial acquisition costs and for funding the development of a selected property through to commercial production. |
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MetaLeach will provide RPT with technical/testwork services on its normal commercial terms in relation to the application of the leaching technologies to each selected property. |
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MetaLeach will provide a licence for the use of its leaching technologies only on the selected property to enable the property to be developed and for commercial production to proceed. |
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RPT and MetaLeach will share profits and gains from a selected property, after crediting RPT with all acquisition and subsequent development costs, in the ratio 80 per cent & 20 per cent respectively. |
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The licence will be at no cost to RPT, but if third parties have an interest in the selected property the licence will contain royalty obligations reflecting the extent of the third party interests. |
Martin Rosser, CEO of Alexander, said: "We welcome this commercial agreement with RPT as an excellent way of accelerating the commercialisation of our leaching technology for mutual benefit. It allows us to participate in any future profits and gains via a significant equity stake in suitable properties/projects but with a negligible cost to Alexander. We have identified many attractive opportunities in different regions of the world suitable for acquiring direct equity interests in copper and zinc properties and development projects. In turn, RPT brings its valuable financial resources and equity capital markets experience to this exercise and we are already presenting properties, with excellent prospects, for their consideration. Meanwhile, the global licensing of our technology, which is aimed at generating a long term royalty stream, continues to be a business priority, and is progressing well."
Under the agreement, which can be mutually extended after twelve months, MetaLeach will provide RPT with information regarding potential mineral properties which may be suitable for the use of MetaLeach's proprietary leaching technologies (in particular its AmmLeach® process), and which could be instrumental in the financially viable development of the properties.
RPT will be entitled to select one or more properties in which it wishes to acquire an interest and it will be responsible for funding the initial acquisition costs. RPT will also fund, or be responsible for procuring funding for, the development of a selected property through to commercial production.
MetaLeach will assist in the negotiations for the acquisition of an interest in the potential properties. Until RPT has had an opportunity to review the suitability of each of the potential properties, MetaLeach agrees not to provide any information with respect to that potential property to any other company, individual or other entities. In the event that a potential property is not selected for acquisition by RPT within three months, then MetaLeach shall be free to provide details to other parties. MetaLeach is obligated to provide information regarding at least three properties in each of the first and second six months periods of the agreement.
In consideration for the property identification service, RPT will pay MetaLeach a consultancy fee of US$300,000 per annum, of which the first US$150,000 is payable on signature of the formal agreement and then payable in equal monthly instalments commencing six months thereafter.
MetaLeach will provide RPT with technical assistance services, including conducting testwork, in relation to the application of the leaching technologies to each selected property, on MetaLeach's normal commercial terms. In addition, MetaLeach will provide a licence for the use of its leaching technologies on the selected property at no cost to RPT to enable the property to be developed and for commercial production to proceed. The no-cost licence entitlement shall continue in force only if RPT and MetaLeach together own the entire interest in the selected property.
In consideration for the above, RPT and MetaLeach will share profits from a selected property in the ratio 80 per cent & 20 per cent respectively. Profits and gains will be shared after crediting RPT with all acquisition costs. RPT and MetaLeach will be diluted proportionately by external investors in any selected property.
In connection with this transaction, a finder's fee is payable, which will be settled by issuing 500,000 new ordinary shares ("Shares") in the capital of the Company to Morgarlan Limited. Application has been made to the London Stock Exchange for the Shares to be admitted to trading on AIM. The Shares will when issued rank pari passu with the Company's existing issued ordinary shares. Dealings in the Shares are expected to commence on 3 September 2009 ("Admission").
Following Admission, the Company's enlarged issued share capital will comprise 135,034,667 ordinary shares with voting rights. The Company does not hold any shares in treasury. This figure of 135,034,667 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.
For further information please contact:
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Martin Rosser |
Matt Sutcliffe |
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Chief Executive Officer |
Executive Chairman |
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Mobile: + 44 (0) 7770 865 341 |
Mobile: +44 (0) 7887 930 758 |
Alexander Mining plc
1st Floor
35 Piccadilly
London
W1J 0DW
Tel: +44 (0) 20 7292 1300
Fax: +44 (0) 20 7292 1313
Email: [email protected]
Website: www.alexandermining.com
Nominated Advisor and Broker
Alasdair Younie/John Prior
Arbuthnot Securities Limited
Arbuthnot House
20 Ropemaker Street
London
EC2Y 9AR
Tel: +44 (0) 20 7012 2000
Public/Media Relations
Tim Blackstone
Britton Financial PR
62 Britton Street
London
EC1M 5UY
Tel: +44 (0) 20 7242 9786
Mobile: +44 (0) 7957 140 416
Email: [email protected]
Appendix
Background notes for editors
RPT Resources Ltd.
RPT Resources Ltd (http://www.rptresources.com) is a well financed junior explorer listed on the TSX Venture exchange. RPT looks to maximize shareholder value by acquiring, exploring and developing world class projects in the resource sector. With approximately C$13 million in cash, RPT is well placed to take advantage of the outstanding opportunities arising in the currently favourable market conditions. RPT currently has projects in the uranium, oil and gas, and platinum-palladium sectors. Its flagship project is the Dorion property, which lies 4km along strike and to the North East of Magma Metal's Thunder Bay North (TBN) polymetallic project in Ontario, Canada. The TBN project recently won the 2008 Discovery of the Year Award presented at this year's North Western Prospectors Association conference.
Alexander Mining plc
Alexander, through its wholly owned subsidiary MetaLeach Limited, is solely focused on the commercialisation of its proprietary mineral processing technologies. Alexander has already received test-work payments and the pipeline of amenability test-work programmes is increasing steadily. A major campaign to grow this revenue stream is under way, with the aim of securing future royalties and/or free carried equity interests in attractive base metals projects and/or mines.
AmmLeach®, for which patents are pending, has the potential to revolutionise the extraction processes for high acid consuming copper and zinc oxide deposits. The operating cost differential between AmmLeach® and conventional heap leaching treatment methods for high sulphuric acid consuming ores and the AmmLeach® ammonia process is a significant order of magnitude in AmmLeach®'s favour.
The AmmLeach® process was developed as a result of Alexander's successful pilot plant demonstration at its Leon copper project in Argentina and subsequent research and development. As well as copper oxides, AmmLeach® has excellent potential for developing a new SX-EW process for producing high purity zinc metal or an intermediate product at the mine.
The zinc process has been trialled successfully on a bench scale and larger scale test-work is imminent. The AmmLeach® process leaches common zinc oxide minerals with high extraction efficiencies and offers a potentially economic processing route for many zinc oxide deposits that are currently economically unviable.
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