Alexander Mining : Option Signed With Mid-Tier Mining Company

15 September 2014

Alexander Mining plc

('Alexander' or the 'Company')

Option agreement signed with mid-tier mining company towards the development of the AmmLeach® technology

Alexander is delighted to announce a major development towards the establishment of an AmmLeach® zinc oxide processing plant with the signing of an option agreement ('Agreement') with a mid-tier mining company ("the entity").  Under the Agreement, the entity has been granted an exclusive three months' option period to complete due diligence on the AmmLeach® zinc processing technology.

Under the terms of the Agreement, Alexander has granted the entity an exclusivity period of three months (expiring 15 December 2014) in order to complete the due diligence. Furthermore, the entity has paid Alexander a non-refundable option cash payment of US$360,000. The exclusivity period may be extended for up to three further months by further non-refundable payments to Alexander of US$120,000 per month.

If, upon successful completion of due diligence, the entity chooses to exercise the option, the Agreement envisages the following key terms:

1.   The entity would subscribe for 60,000,000 new ordinary shares in Alexander at a price of 3 pence per share, providing the Company with £1,800,000 in cash (the "Option Payment");

2.   Of the Option Payment, £900,000 will be applied to a work programme, including the development and pilot plant testing of the AmmLeach® technology, to be agreed between Alexander and the entity.  The remainder of the funding will be used by Alexander for working capital purposes;

3.   The entity would be granted an effectively exclusive licence for the use of AmmLeach® technology for zinc production in a jurisdiction agreed by the parties;

4.   The entity will be entitled to appoint up to two non-executive directors to the board of Alexander;

5.   The licence terms comprise the payment to Alexander of a 2.0% gross sales revenue royalty on all metal production by the entity using the AmmLeach® technology.

In the event that the entity terminates the Agreement within four weeks of its signing, Alexander will grant to the entity 3,000,000 new ordinary shares in the capital of the Company, for nil consideration.

Martin Rosser, CEO, said: "The option agreement signed with a highly regarded mid-tier mining group represents a major development towards the potential establishment of an AmmLeach® zinc oxide processing plant.  The option holder is a multi-commodity mining company with exploration, development and operational experience.    We look forward to working closely together during the option period."

For further information please contact: 

Martin Rosser                                                 Matt Sutcliffe

Chief Executive Officer                                   Executive Chairman

Mobile: + 44 (0) 7770 865 341                       Mobile: [phone]

Alexander Mining plc

1st Floor

35 Piccadilly

London

W1J 0DW

Tel:           [phone]

Fax:          [phone]

Email:       [e-mail]

Website:  www.alexandermining.com

Nominated Adviser and Broker Northland Capital Partners Limited Matthew Johnson/Lauren Kettle [phone]

Public/Media Relations

Britton Financial PR

Tim Blackstone

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

ENDMSCQKPDNCBKKPCD