Alexander Mining set to benefit from Deep-South purchase of Turkey project

8th May 2019 08:07

(Sharecast News) - Alexander Mining was upbeat on Wednesday, following an announcement from Toronto-traded Deep-South Resources has closed the acquisition of 75% of the Kapili Tepe copper, nickel, cobalt and gold project in Turkey.The AIM-traded firm said the project was primarily a copper mineralised altered and brecciated shear zone also containing nickel, cobalt and gold mineralisation.It said it comprised one mining licence and two exploration licences, which were contiguous, with the licensed area covering about 5,240 hectares.Deep-South Resources had proposed to delineate a NI 43-101 compliant mineral resource estimate, and then decide on whether to conduct a preliminary economic assessment, which would be followed by a pre-feasibility study for the potential construction of a mine.Both the preliminary economic assessment and pre-feasibility study work would include investigating a mineral processing plant at the KT Project using the 'Leaching Technologies'.Alexander had granted Deep-South Resources a licence for the potential use of its Leaching Technologies on amenable mineralised materials sourced from the KT Project, and also associated mineral processing technical consultancy services.The terms of that licence stipulated that Alexander would receive a royalty of 2.5% of gross saleable metal products produced from a potential mine at the KT Project, if using Alexander's Leaching Technologies.Upon completion of Deep-South Resources' acquisition of the 75% interest in the KT Project and approval from the TSX Venture Exchange, Deep-South Resources would issue 500,000 common shares to Alexander.For an initial period of 24 months from the start of Deep-South Resources formally committing to a preliminary economic assessment of the KT Project, to be renewed on a mutually acceptable rolling three months' basis thereafter, a monthly technical consultancy services retainer fee of $7,500 would be paid in advance."We are delighted that Deep South Resources has completed its acquisition of 75% of the Kapili Tepe project and we look forward to working closely together with DSR on this exciting project, which has significant potential for the use of our leaching technologies," said Alexander Mining chief executive officer Martin Rosser.