Alexander Mining announces changes to agreement with Ebullio

15th Apr 2014 15:08

Alexander Mining was on Tuesday informed by the Ebullio Group that it has cancelled its agreement to acquire all of the assets in Turkey of Red Crescent Resources. The cancellation means that Alexander's commercial licence, financing and consultancy agreement with Ebullio will not be carried out in its current form. However, the group explained that it has been told that the termination of the Red Crescent acquisition does not alter Ebullio's commitment to the mining investment in Turkey. It plans to acquire other suitable, unencumbered assets to complement its existing base and precious metals assets in the country as part of a balanced business and product portfolio capable of delivering sustainable production and profit growth.As such, Alexander and Ebullio have confirmed their mutual intention to maintain the commercial, technical and financial principles of the agreement and plan to meet shortly to discuss the revision of the agreement to reflect these intentions, but in the light of Ebullio's termination of the Red Crescent transaction. Importantly, Lars Steffensen, Ebullio's Executive Managing Partner, said that: "Ebullio remains Alexander's largest shareholder and our commitment to them and their technology is unwavering. We have not changed our dedication to developing the close working relationship with Alexander. "In particular, we remain highly focused on establishing a profitable commercial scale zinc cathode production plant in Turkey using Alexander's AmmLeach technology. The intention would be for a plant taking feed from a combination of the future acquisition of suitably attractive zinc oxide properties and third party sources."The news prompted a 17.95% slump in the share price to 4.00p by 2:08 on Tuesday. NR