Alexander finds buyer for MetaLeach, proposes acquisition for remaining shell
London-listed Alexander Mining has found a strong mining industry buyer for its mineral processing technologies business and will request shareholder approval for the disposal of the assets of MetaLeach, it said in a company update on Friday.
Alexander announced in September that it would not continue to provide financial support for MetaLeach and that it would change the company’s business strategy to become a cash shell.
On Friday, Alexander announced that it was in advanced negotiations to acquire energy efficiency services company eLight, operating in the UK and Ireland.
The proposed transaction would be classified as a reverse takeover and Alexander’s shares would be suspended from trading on Aim from 07:30 on Friday.
The completion of the transaction was subject to Alexander's shareholders approval, the raising of an appropriate level of equity through a placing of £3-million, the grant of a Rule 9 waiver by the takeover panel in respect of the proposed issue of new shares to the shareholders of eLight and the admission of the share capital of the enlarged group to trading on Aim.
"I am delighted that Alexander has been able to advance into rapid execution of the new strategy announced to the benefit of our shareholders. Simultaneously, having found a strong mining industry buyer for the company's MetaLeach business, as well as an attractive acquisition opportunity for the remaining shell, is fortuitous and satisfying for the board,” said nonexecutive chairperson Alan Clegg.
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