TIDMAXM
RNS Number : 3751Y
Alexander Mining PLC
02 March 2017
2 March 2017
Alexander Mining plc
("Alexander" or the "Company")
Lithium Research and Development Joint Venture
-- New lithium processing technology research and development project
-- Opportunity to earn up to 80% licence rights in any intellectual property created
-- Complementary to existing AmmLeach(R) potential for cobalt
production for use in lithium batteries
Alexander is pleased to announce a significant new research and
development joint venture project ("JV") for the recovery of
lithium from hard rock sources. The JV is between the Company and
Dr. Nicholas Welham, Alexander's Principal Technology Consultant
for ammoniacal and hypochlorous acid leaching.
Martin Rosser, CEO, said: "As an acknowledged expert in lithium
and hydrometallurgy, working with Dr. Welham on this project offers
the exciting potential to develop new lithium processing
intellectual property in a sector of major interest. Moreover, it
is complementary to our existing cobalt recovery technology as
cobalt is an essential component in lithium batteries."
Dr. Welham said: "I am delighted to be working in partnership
with Alexander, which has a belief that novel technology will
change the mining industrial landscape. Its on--going support for
AmmLeach(R) and HyperLeach(TM) has been considerable, and I look
forward to continuing working with their professional management
team in bringing this opportunity to fruition."
Research and Development Joint Venture
The JV is to investigate the potential recovery of lithium from
lithium bearing minerals. The JV parties believe that the only
realistic sources of lithium to supply the rapidly expanding demand
is from hard rock resources. Brine deposits are primarily in South
America (Bolivia, Argentina and Chile) and China and historically
these countries have a moderate sovereign risk. Brine deposits are
concentrated by solar evaporation from large ponds and can only
realistically occur in extremely arid areas. It is hard to fast
track production from brine as the process to obtain lithium
typically takes 18-24 months from commissioning to first product.
Hard rock resources are a more viable proposition for rapid
development as the time from commissioning to first concentrate can
be a matter of a few weeks.
The spodumene (LiAlSi(2) O(6) ) concentrate is typically sold to
Chinese producers of lithium carbonate, who use a combined
pyrometallurgical-hydrometallurgical ("pyro-hydro") flowsheet to
produce a lithium carbonate (or hydroxide) product. The high cost
of the pyro--hydro process remains the significant obstacle to the
low cost production of lithium carbonate (or hydroxide) from
spodumene.
Dr. Welham has found what appears to be a promising route to the
direct dissolution of spodumene under ambient temperature and
pressure conditions. Further work is required to confirm these
initial results and to expand the database for subsequent
optimisation. At this stage, heap leaching appears the most likely
mode of operation given the slow apparent rate of dissolution. If
this is confirmed, it will open up a significant number of
opportunities with companies with lithium resources. The novel
process will allow processing of lower grade ore potentially
increasing resources considerably. Tailings from existing
operations are also expected to be treatable.
Joint Venture Terms
Alexander will be entitled to be the initial sole funder of the
JV in return for an economic interest of up to 80 per cent. in a
worldwide exclusive licence ("Licence") to commercialise the new
technology(ies). The JV will be in stages, with stage 1, proof of
concept, budgeted to cost US$10,000 and expected to take
approximately three to four months. Thereafter, if stage 1 is
favourable, Alexander may agree to fund part or all of the next
stages, including a mini pilot plant, budgeted for an additional
US$240,000 and to take 12-18 months.
In the event that Alexander does not wish to proceed Dr. Welham
has the right to seek further developmental funding from other new
partner(s) ("New Partners") on the same terms as Alexander.
The majority shareholder in the Licence, unless it is agreed
otherwise amongst the Partners, will be entitled to become the
Technology Manager of the licence. The Technology Manager will be
free to market the commercial use of the Project Intellectual
Property Rights and agree with potential third party users any
commercial licensing agreement of its choosing. This may include,
but is not limited to, advance entry fee, royalty, project equity
etc.
Of the net licensing revenue received by the Technology Manager,
20 per cent. will be paid to Dr. Welham and the remaining 80 per
cent. will be divided amongst the Licence holders in proportion to
their Licence ownership equity interest.
Complementary to AmmLeach(R) technology for cobalt recovery
The new lithium R&D programme is complementary to the
Company's existing AmmLeach(R) and HyperLeach(TM) processing
technologies for the recovery of cobalt. Alexander is actively
looking for commercial opportunities to utilise these patented
technologies for the recovery of cobalt compounds (or metal) at the
mine site. This is an especially interesting opportunity given the
strong growth forecast for electric vehicles sales and the
batteries they need. Many of the preferred batteries used, as well
needing lithium, also require significant quantities of cobalt.
There is an industry problem in obtaining cobalt using ethical
production methods, in particular from countries such as the
Democratic Republic of the Congo ("DRC"). With such a restriction,
the key challenge, given the DRC's dominance of world cobalt
production and reserves (circa over 50% for each), will be securing
supply from other acceptable sources.
This announcement is inside information for the purposes of
Article 7 of EU Regulation 596/2014.
S
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
(Corporate Broking)
Turner Pope Investments
(TPI) Ltd
James Pope / Ben Turner
+44 (0) 20 3621 4120
Background on Lithium
Source, January 2017: US Geological Survey
https://minerals.usgs.gov/minerals/pubs/commodity/lithium/mcs-2017-lithi.pdf
Worldwide lithium production increased by an estimated 12% in
2016 in response to increased lithium demand for battery
applications. Worldwide lithium production capacity was reported to
be 49,400 tonnes ("t") in 2015; capacity utilization was estimated
to be 64% in 2015 and 71% in 2016. Based on average projections by
producers and industry analysts of about 14% growth worldwide,
consumption of lithium in 2016 is projected to be about 37,800t, up
from 33,300t in 2015.
Two brine operations in Chile and a spodumene operation in
Australia accounted for the majority of world lithium production.
The two lithium producers in Chile and the leading lithium producer
in Argentina each announced plans to further expand lithium
hydroxide production capacity to meet increasing demand from the
electric vehicle industry. The long lead time to achieve production
from brine makes product from these expansions available sometime
in the early--2020s. The joint owners of the leading spodumene
operation in Australia announced plans to increase capacity and one
owner began construction of a lithium hydroxide plant in Australia.
To diversify supply, Chile's two lithium producers each announced
planned joint ventures with companies in Argentina.
Lithium supply security has become a top priority for technology
companies in the United States and Asia. Strategic alliances and
joint ventures between technology companies and exploration
companies continue to be established to ensure a reliable,
diversified supply of lithium for battery suppliers and vehicle
manufacturers. Brine operations were under development in
Argentina, Bolivia, Chile, China, and the United States; spodumene
mining operations were under development in Australia, Canada,
China, and Finland; a jadarite mining operation was under
development in Serbia; and a lithium-clay mining operation was
under development in Mexico.
Background on Dr. Nicholas Welham
Dr. Nicholas Welham graduated from Leeds University in 1986 with
B.Eng (Hons) and from the Royal School of Mines at Imperial College
with a PhD in 1993. He then moved to Australia to work at the
Parker Centre for Hydrometallurgy, the Australian National
University, Murdoch University and the University of Ballarat (now
Federation University). Dr. Welham has over 80 professional journal
publications and is inventor on around 50 international patents
which have been granted for novel hydrometallurgical
technologies.
Dr. Welham has undertaken a large number of industrially
orientated minerals projects, primarily in the hydrometallurgy
area. His international standing was enhanced by being an
Editor-in-Chief of the Elsevier journal "Hydrometallurgy" for ten
years. He has been Alexander Mining's Principal Technological
Consultant since 2007 and has been the principal developer of the
patented AmmLeach(R) and HyperLeach(TM) technologies. Since 2012,
Dr. Welham has been an independent consultant specialising in
developing novel hydrometallurgical processes for a range of
clients.
Dr. Welham also offers a wide range of industry training
courses, including the only professional course on Lithium Ore
Processing. This course is scheduled to run as part of the MetPlant
2017 conference run by the Australasian Institute of Mining and
Metallurgy in September. Negotiations are underway for the course
to be run in London and Canada in mid-2017.
This information is provided by RNS
The company news service from the London Stock Exchange
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