Alien Metals Shares Rise on Funding Agreement Right for Australian Project
31 Agosto 2022 - 4:52AM
Dow Jones News
By Anthony O. Goriainoff
Alien Metals Ltd. shares rose Wednesday after it said it had
signed an agreement with Anglo American PLC for the exclusive right
to negotiate up to $15 million in project funding and offtake
agreements for the Hancock iron ore project in Australia.
Shares at 0711 GMT were up 0.15 pence, or 26%, at 0.73
pence.
The AIM-listed minerals-exploration company said the agreement
with Anglo American includes a $10 million advance payment facility
and a 100% offtake from the project for different types of ore,
adding that the offtake terms will include prepayments for up to $5
million for the first 12 months.
An offtake agreement refers to the arrangement whereby a
producer and a buyer agree to purchase or sell portions of the
producer's upcoming goods.
The agreement achieved through its wholly-owned subsidiary Iron
Ore Company of Australia Pty Ltd. also includes Anglo American
receiving an agreed royalty for 24 months.
"This mandate letter supports our near-term production
aspirations and, unlike conventional debt finance, the potential
bespoke funding with offtake provides alignment between the parties
for the pursuit of scale across multiple assets with a world class
counterparty," Alien Metals Chief Executive Bill Brodie Good
said.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
August 31, 2022 03:37 ET (07:37 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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