Alexander Mining PLC Licence Agreement with Accudo Metals (1731I)
August 25 2016 - 9:58AM
UK Regulatory
TIDMAXM
RNS Number : 1731I
Alexander Mining PLC
25 August 2016
25 August 2016
Alexander Mining plc
("Alexander" or the "Company")
Licence Agreement with Accudo Metals Pty. Ltd. for Projects in
Australia
-- Leaching technology licence agreed with Accudo for projects in Australia
-- Attractive royalty and licence fee payments to Alexander
-- Accudo is well financed and has excellent mining industry experience and expertise
-- First stage testwork in Australia on highly attractive first target copper project underway
Alexander Mining plc is delighted to report that its wholly
owned subsidiary, MetaLeach Limited ("MetaLeach"), has executed a
licence agreement ("Licence Agreement") with Accudo Metals Pty.
Ltd. ("Accudo"), a new Australian company which has been
established to exploit Alexander's proprietary leaching
technologies ("Leaching Technologies").
Accudo is funded by sophisticated investors and clients of
BlueMount Capital ("BlueMount"), a national mid-tier Australian
investment bank. Pre-funding for test work and a full Scoping Study
on the first targeted opportunity has been committed. Subject to
the Scoping Study being positive, Accudo foundation funders and
BlueMount clients will fund a detailed feasibility study.
MetaLeach has granted Accudo an exclusive licence for up to five
mining projects (each a "Project") in Australia to use its Leaching
Technologies, subject to securing commercial terms with the Project
owners, on the following terms:
1. Royalty
Alexander will receive a royalty of 3.5 per cent. ("Royalty")
for product produced using the Leaching Technologies ("Plant
Product"). The Royalty to be calculated either on the gross value
of London Metal Exchange Grade copper or zinc cathode ("Sold
Product") or, for any other Plant Product which has been sold and
for which payment is received or entitled to be received ("Sold
Product").
2. Project Payments
In addition to the Royalty, the Licensee shall pay MetaLeach
progress payments for each Project as follows:
a. AU$250,000 on the completion of a Definitive Feasibility
Study for each Project that clearly establishes the technical,
economic and financial feasibility of the Project and the use of
the Leaching Technologies in Processing Operations with respect to
a Plant located in the particular Project Tenements subject to this
Licence Agreement;
b. AU$250,000 within seven calendar days of the first commercial
sale and shipment of Plant Product utilising the Leaching
Technologies; and
c. AU$250,000 three months after the first sale and shipment of
Plant Product utilising the Leaching Technologies.
3. Grant of Option
Conditional upon the payment by the Licensee to MetaLeach of the
payments set out below the Licensee shall have the Option to
convert the non-exclusive component of the Licence into an
exclusive Licence (exclusions excepted for any Licence Agreement(s)
already executed with third parties at the time of the Option
exercise) for the use of the Leaching Technologies in
Australia.
Exercise of the Option is conditional upon the Licensee
commencing and funding, on standard commercial terms, technical
work with MetaLeach and commencing with a feasibility study for the
Leaching Technology on the first Project within one year from the
date of execution of the Licence Agreement, and the following
payment(s) to MetaLeach:
a) at any time within 12 months from the date of execution of
the Licence Agreement: AU$850,000; or
b) on reaching the point where, for the first Project selected,
a Licence Fee payment of AU$250,000 is due to MetaLeach as above in
2(a) and within 20 working days therefrom: a payment
AU$1,350,000.
Martin Rosser, Chief Executive Officer, said: "We are delighted
to have signed this agreement with Accudo which is well financed
and intent upon rigorously evaluating the use of Alexander's
Leaching Technologies in Australia. We have been in detailed
discussion with them about a range of identified potential projects
of interest and we look forward to developments with optimism."
Accudo director Saliba Sassine said: "Accudo is pleased to have
entered into this ground-breaking agreement for both parties. The
Company is excited about the prospects and testing the technology
on targeted ores."
Background on Accudo
Accudo is a special purpose vehicle established to hold granted
licences for the MetaLeach technologies and to test the Leaching
Technologies on target ore bodies with a view to taking these into
commercial production. The company will pursue these projects in a
systematic manner and subject them to detailed testing and
definitive feasibility studies ahead of commercial production. The
privately-held company is funded by sophisticated investors and
clients of BlueMount Capital, a national mid-tier Australian
investment bank. BlueMount Capital specialises in corporate
finance, including IPO, M&A, MBO and cross border transactions
(www.bluemountcapital.com).
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
ENDS
For further information, please contact:
Martin Rosser
Chief Executive
Mobile: +44 (0) 7770 865
341
Matt Sutcliffe
Executive Chairman
Mobile: +44 (0) 7887 930
758
Alexander Mining plc
Tel: +44 (0) 20 7078 9566
Email: mail@alexandermining.com
Website: www.alexandermining.com
Northland Capital Partners
Limited
Matthew Johnson / Gerry
Beaney
+44 (0) 20 3861 6625
(Corporate Finance)
John Howes / Abigail Wayne
(Corporate Broking)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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