Alexander Mining PLC Proses Update on Zinc Plant in Turkey (7090C)
October 02 2018 - 5:38AM
UK Regulatory
TIDMAXM
RNS Number : 7090C
Alexander Mining PLC
02 October 2018
2 October 2018
Alexander Mining plc
("Alexander" or the "Company")
Major Progress by Proses for Establishing a Zinc Processing
Plant in Turkey
-- Suitable site for zinc plant agreed with owners
-- Treatment flexibility for material sourced at site and from
miners in the historic Kayseri zinc district
-- Working on the plant engineering design, ore reserve
delineation and completing an environmental impact assessment
study
Alexander is pleased to announce that further to the
announcement on 21 February 2018 regarding a commercial and
technical partnership agreement ("Agreement") with Proses
Mühendislik, Danı manlık, İn aat ve Tasarım AS. ("Proses"), major
progress has been made by Proses for establishing a zinc plant in
Turkey.
Under the Agreement, Proses has been investigating and
progressing plans in Turkey for the establishment of a semi
industrial scale processing plant ("SISP") using Alexander's
patented AmmLeach(R) technology for processing lower grade oxide
zinc ores. Proses has now entered into a formal royalty agreement
with Osmanlı Madencilik Ltd ("Osmanlı") of Turkey. Osmanlı will
receive a percentage of product from the SISP and from ore produced
by Proses at the Osmanlı Mining Licence Area as a royalty.
Under this agreement with Osmanlı and subject to environmental
impact studies, permitting and Proses securing the necessary
funding, the plan is to extract zinc oxide ore from the licence
area and to process the ore in a SISP facility to be established on
site. Proses will also proactively seek to receive or purchase zinc
oxide ores from other miners in the region for treatment at this
plant.
Martin Rosser, CEO, said: "We are delighted with the excellent
news and swift progress made by our partners Proses and greatly
appreciate their hard work and efforts to reach this exciting
milestone. We very much look forward to working together on the
next stages."
Alexander would receive a gross sales revenue royalty on the
value of the SISP product produced using its technology. Subject to
the results of the SISP, Alexander would negotiate with the project
owners a technology licence agreement ("TLA"). The TLA would be on
Alexander's standard commercial terms and should include a gross
sales revenue royalty on all commercial scale metal or high
value-added processing plant product.
The Osmanlı mining licence covers an area of nearly 1,000
hectares and is conveniently located in Yahyalı township, in
Kayseri Province, Central Anatolia, some 60km south of the major
city of Kayseri. The district is notably rich in zinc (and lead)
mineralisation and there is current as well as significant historic
mining activity. The SISP facility is expected to treat about
100,000 tonnes per annum of oxide zinc ores with a grade of around
5 per cent. zinc, with a final product of electrolytic zinc
metal.
Up until now, lower grade oxide ores with less than 10 per cent.
zinc content have been uneconomic to treat but using AmmLeach(R),
it should be possible to economically treat ores with a zinc grade
as low as 5 per cent.
Proses has now commenced work on the engineering design for the
SISP facility, ore reserve delineation at the licence area,
completing an environmental impact assessment study and obtaining
the necessary environmental and legal permits. The expected time
for this to be completed before SISP construction could start is
approximately twelve months.
For further information, please contact:
Martin Rosser
Chief Executive
Mobile: +44 (0) 7770 865 341
Alexander Mining plc
Tel: +44 (0) 20 7078 9566
Email: mail@alexandermining.com
Website: www.alexandermining.com
Northland Capital Partners Limited
Matthew Johnson / Dugald J Carlean
(Corporate Finance)
Isabella Pierre (Corporate Broking)
Tel: +44 (0) 20 3861 6625
Turner Pope Investments (TPI)
Ltd
Andy Thacker
Tel: +44 (0) 20 3621 4120
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END
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