Alligator Energy (ASX:AGE) has completed its initial investment of $900,000 to acquire a 7.8% interest in copper in-situ recovery (ISR) specialist EnviroCopper (ECL).
Alligator, which has a $281.94 million market capitalisation, is now expected to enter into a shareholders agreement governing its further staged investment options in ECL, as reported by this news service in December.
The company says it holds future optionality to further invest in ECL to acquire up to 50.1% of the company.
Alligator Resources Chief Executive Officer (CEO) Greg Hall says: “Alligator is very pleased to confirm completion of all outstanding matters for the initial investment into EnviroCopper. This represents a unique opportunity for Alligator to participate in copper ISR technology, research and trials with an experienced team, plus assist as the projects potentially head towards commercial production.
“Alligator recently undertook a site visit to the Kapunda Copper ISR project to inspect the successfully completed push-pull copper ISR testwork, the results of which are being evaluated and finalised“
Alligator recently undertook a site visit to the Kapunda Copper ISR project to inspect the successfully completed push-pull copper ISR testwork, the results of which are being evaluated and finalised.”
ECL provides Alligator with exposure to an ‘experienced’ ISR team, which has undertaken ‘significant’ exploration and research and development (R&D) approvals for testwork into ISR of shallow fractured rock aquifer-hosted oxide copper deposits.
The investment in ECL is also ‘extremely complimentary’ to Alligator’s existing and ‘substantial’ in-house ISR expertise and expands the latter’s ISR footprint to include an additional future in-demand commodity.
Following the investment, Alligator announces a technical advisory committee will be formed, enabling the company to assist ECL with its planned in-situ trial work across all projects and an ability to jointly apply any IP that is developed.
The South Australian government is focused on its strategy of producing 1 million tonnes of copper per annum, providing a ‘positive’ backdrop to the potential for ISR copper.
ISR copper has been used to extract copper at a number of projects both in Australia and the US.
ECL is an ISR specialist focused on its Kapunda and Alford West ISR projects in South Australia.
Alligator Energy is a uranium and energy related minerals explorer with a portfolio of projects situated in the Northern Territory, South Australia, and Italy.
Write to Adam Drought at Mining.com.au
Images: Alligator Energy
