Alligator Energy Ltd (ASX:AGE, OTC:ALGEF) has expanded its interest in energy minerals with a strategic investment in EnviroCopper Ltd (ECL), gaining exposure to the company’s South Australian in-situ recovery (ISR) copper project portfolio and experienced ISR team.
AGE has retained the right to further invest to earn up to 50.1% of ECL, as the company advances ISR trials for environmentally sustainable copper extraction at its flagship Kapunda Copper Project, with similar ambitions for the Alford West Copper Project.
Investing in future copper demand
“Alligator has been evaluating options for potential energy minerals opportunities both within its existing portfolio (exploration) and externally, as a potential second future business stream along with its significant uranium portfolio,” Alligator Energy CEO Greg Hall said.
“The investment into EnviroCopper Ltd supports this, along with significant synergies to our existing in-house ISR uranium expertise.
“It provides the opportunity for AGE to be invested in and involved in future copper demand for the green energy transition through the significant oxide copper resources in these projects, and with wider potential within South Australia and Australia.”
Alligator is not the only company to invest in ECL – mining giant BHP (ASX:BHP) Ltd also continues to fund part of the copper company’s field investigations, including Site Environmental Lixiviant Trial (SELT) of copper ISR at Kapunda.
Kapunda ISR trials
“ECL has approvals in place to proceed with initial copper ISR trials at Kapunda and Alligator commends ECL’s strong inroads into exploration, resource and extraction modelling, bench scale test work and community engagement around its trial work now underway at Kapunda,” Hall continued.
“The fact that ECL was able to attract a non-dilutive $2.5 million funding commitment from OZ Minerals (now BHP Ltd) demonstrates the growing interest in ISR as a credible and environmentally friendly technique to economically extract copper from the right geological setting.
“The ECL team’s expertise augments our own, with our team also having substantial downstream operational experience which will complement ECL.
“As ECL has its own ISR technical team, this investment will not distract from Alligator’s increasing pace of work on the Samphire ISR Uranium Project as we advance into a field recovery trial and commence a feasibility study through 2024.”
The two companies are targeting ISR extraction due to its distinct environmental advantages over traditional open pit/crush/heap leach for shallow oxide copper projects.
ISR has been successfully (and economically) used to extract copper in a number of projects in Australia and the US.
ECL’s team is experienced in ISR methods, having undertaken exploration, research and development and approvals for test work into ISR of shallow fractured rock aquifer-hosted oxide copper deposits.
Details of investment
Alligator will make an initial investment of $900,000 for 7.8% of ECL, with an exclusive option to make further staged investment to increase its ownership to 50.1%.
The two companies will form a technical advisory team, enabling AGE to assist ECL with its ISR trial work across all projects and jointly apply any intellectual property that’s developed from their efforts.
The environment for copper mining in South Australia is particularly supportive at the moment, considering the state government’s copper strategy is targeting 1 million tonnes per annum of copper production.
“EnviroCopper welcomes the Alligator investment strategy which further supports our growth in smarter, lower impact, environmentally and therefore socially acceptable exploration and mining developments,” EnviroCopper managing director Leon Faulkner said.
“Low footprint exploration and extraction for copper and other energy metals is vital for the vertical integration in green energy transition.
“The synergies between both companies will accelerate our projects with additional expertise.”