Vanadium Research and Development Project
- Research and development project for potential vanadium leaching technology
- Vanadium is important for use in speciality steels and battery technology
- Funding for project provided by Multicom Resources
- Multicom Resources entitled to a technology licence for the use of any IP created
- Success payments due to Alexander
- Complementary to existing interest in high technology metals
Alexander is pleased to announce it has agreed a significant new research and development (“R&D”) joint venture project (“JV”) for the potential recovery of vanadium from amenable ores (“Vanadium Leaching Technology”). The JV is between Alexander, Australian company Multicom Resources Pty Ltd (“Multicom”), and John Webster Innovations Proprietary Limited (“JWI”), whose principal is John Webster, a mining industry consultant with a strong background in innovative mineral processing solutions.
If the JV is successful, the potential use of a new Vanadium Leaching Technology would initially be focused on Multicom’s Saint Elmo vanadium project in North Queensland, Australia.
Martin Rosser, CEO, said: “We look forward to working with our partners in investigating the potential creation of a viable commercial process for the recovery of vanadium by using leaching. This initiative is complementary to our current interest in high technology metals innovative processing methods.”
Nathan Cammerman, Executive Director, Multicom Resources, said: “The collaboration between Multicom, Alexander and JWI is an important step for our Saint Elmo project as it now moves into its feasibility and permitting stages. If successful, it will enable the development of Multicom’s world class project to be the lowest cost producer of vanadium pentoxide globally.”
Research and Development Joint Venture
Under the JV, Multicom will provide a maximum funding commitment of AUD$250,000 for the R&D programme, which will be conducted by JWI in two stages. Firstly, an initial test work programme, for which the interim maximum funding commitment is AUD$35,000. If this work is successful, it should lead to flow sheet development to pre-feasibility level, and to be followed by second stage feasibility test work, the scope of which would be determined at that time by the JV parties.
Any JV IP created will be owned by Alexander, Multicom and JWI one third each. Multicom has been granted a licence for the use of the potential Vanadium Leaching Technology on terms that include a gross sales revenue royalty for the use of the potential new IP on an exclusive basis in Australia and non-exclusive basis for the rest of the world.
Multicom also has an option to convert its rest of the world licence to an exclusive worldwide licence in return for a payment of US$1,500,000 each to Alexander and JWI at any time within three years from the date of execution of the JV agreement.
Alexander will provide certain management services to the JV and where Multicom successfully uses or sub-licences to another party the potential Vanadium Leaching Technology in a commercial scale mineral processing plant exceeding one hundred (100) tonnes of vanadium saleable product per annum, then Multicom would pay the following success payments to Alexander:
- an amount of US$400,000 payable within five business days from the date of completion of a definitive feasibility study for each successful project that, to the reasonable satisfaction of the Licensee, establishes the technical, economic and financial feasibility of the use of the potential Vanadium Leaching Technology;
- an amount of US$300,000 payable within five business days from the date of the first commercial sale and shipment of saleable vanadium product that is substantially derived from the use of the potential Vanadium Leaching Technology; and
- a further amount of US$300,000 payable within three calendar months from the date of the first commercial sale and shipment of vanadium saleable product that is substantially derived from the use of the potential Vanadium Leaching Technology.
ENDS
This announcement is inside information for the purposes of Article 7 of EU Regulation 596/2014.