TIDMAXM

RNS Number : 1569B

Alexander Mining PLC

05 October 2015

5 October 2015

Alexander Mining plc

("Alexander" or the "Company")

Placing to Raise GBP420,000 and Business Update

The Company is pleased to announce that it has raised GBP420,000 (the "Placing") through the issue of 105,000,000 new ordinary shares of 0.1p each (the "Placing Shares") at a price of 0.4p per share to new and existing shareholders. The net proceeds of the Placing will be used for general working capital purposes. In addition, Alexander has issued investors with one warrant for every three Placing Shares to subscribe for one ordinary share in the Company at an exercise price of 0.45p each (the "Warrants").

As a result of the Placing, the Company has adequate working capital for its present requirements. Accordingly, the Company's AIM trading facility will be restored at 7.30 a.m. today.

Placing Details

Alexander has issued a total of 7,359,375 warrants at an exercise price of 0.4p to Cornhill Capital Limited ("the Broker Warrants") in connection with the Placing. The Warrants and Broker Warrants have a three year exercise period.

Application has been made to the London Stock Exchange for admission of the Placing Shares and 1,000,000 ordinary shares that were issued to satisfy existing creditors as announced on 28 August 2015 (the "Creditor Shares") to trading on AIM and dealings are expected to commence on 8 October 2015.

Martin Rosser, Chief Executive Officer said: "We are delighted with the outcome of the placing and thank the placees for their support. Importantly, we can now concentrate the Company's efforts on the commercialisation of its processing technology."

Business Update

The Company has maintained its focus on executing a clearly defined commercialisation plan. Although the mining sector has been adversely affected by depressed base metals prices, the Company believes that a new realism about the transformational value of innovative technology and mining asset values has occurred. This should prove to be positive for the Company. Amongst a range of global opportunities, the Company has selected initiatives which it is working on as follows.

Australia

The Company is waiting to continue discussions with Compass Resources regarding the use of its technology at the Browns Oxide copper-cobalt mine now that the refinancing proposal has been approved by shareholders. Separately, Alexander has also identified several attractive copper and zinc opportunities in Australia and the Company is in discussions with another mining company about a possible partnership to investigate these and other opportunities. The intention would be for the Company's partner to acquire interests in properties and projects which have the potential to use Alexander's AmmLeach(R) technology in exchange for a licence agreement and technical services to suit.

Turkey

In addition to awaiting developments on the Sivas copper property, Alexander continues to promote its technology for zinc oxide processing in central Turkey to interested parties. Turkey contains widespread occurrences of high grade zinc oxides in a belt that has been mined sporadically for hundreds of years. In the central Anatolia area, near the city of Kayseri, there are dozens of old mines and workings, plus several that are still working. Currently, these operations produce high grade direct shipping ore ("DSO") with a zinc content greater than 20%, which is exported for processing by foreign smelters. Consequently miners receive a significant discount to the contained zinc metal content.

There has been limited modern exploration in this area of Turkey due to the lack of a technically and economically viable treatment process for bulk tonnage 'lower' grade material (< 20% zinc grade) and also the relative limited occurrence of DSO. However, zinc oxide material typically grading 10-15% zinc is prevalent throughout the belt and is the target material for Alexander's technology.

The Company believes that its technology could be highly beneficial for miners in this area of Turkey and is in discussions about bringing in significant third party support.

Mexico

Alexander has been discussing opportunities for its AmmLeach(R) technology in this region with a North American group with good connections in Mexico. A significant number of potential opportunities have been identified, especially for zinc oxide exploitation, and the Company looks forward to progressing discussions further.

Total Voting Rights

Following admission of the Placing Shares and the Creditor Shares, the Company will have a total of 361,910,288 ordinary shares in issue with each share carrying the right to one vote. The Company does not hold any shares in treasury. Therefore, the total number of ordinary shares with voting rights will be 361,910,288. This figure 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 FCA's Disclosure and Transparency Rules.

Enquiries:

 
 Alexander Mining plc 
 
 Martin Rosser                       Matt Sutcliffe 
  Chief Executive Officer             Executive Chairman 
  Mobile: +44 (0) 7770 865            Mobile: +44 (0) 7887 930 
  341                                 758 
 
 Tel: +44 (0) 20 7292 1300 
  Email: mail@alexandermining.com 
  Website: www.alexandermining.com 
 
 Northland Capital Partners 
  Limited 
 
  Matthew Johnson / Gerry 
  Beaney 
  +44 (0) 20 7382 1100 
  (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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October 05, 2015 02:00 ET (06:00 GMT)

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