TIDMUFO
RNS Number : 4968Y
Alien Metals Limited
05 May 2023
Trading Symbols
AIM: UFO
FWB: I3A1
05 May 2023
Alien Metals Ltd
("Alien" or "the Company")
Renegotiation of Mallina Acquisition
Conditional acquisition of Mallina
Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration
and development company, is pleased to announce it has renegotiated
its agreement (see announcement 5 September 2022), with Mallina
Exploration Pty Ltd ("Mallina"), to fast track the acquisition of
the E 47/3752 tenement that adjoins its flagship Hancock Iron Ore
Project ("Hancock") and provides direct strategic access to the
Great Northern Highway.
Highlights
-- The Company will acquire Mallina Exploration Pty Ltd.
-- The key terms of the agreement remain largely unchanged from
that of the original agreement; however, the Company has negotiated
the removal of the condition precedent relating to exploration
drilling to earn the tenement interest.
-- Removal of this condition precedent allows the Company to
focus on sterilisation drilling across the Miscellaneous Licence (E
47/3752) to enable access road construction.
Rod McIllree, Executive Director, commented:
"I am pleased to announce that we have successfully brought
forward and concluded the acquisition of the Mallina tenement
consolidating our tenement holding in and around Hancock. Fast
tracking this provides us with a strategic advantage in progressing
our project timeline and additionally provides further exploration
upside, allowing us to expand the footprint of known targets."
About the Hancock Project
Figure 1: Location of Hancock Iron Ore Project, Western
Australia
Figure 2: Planned haul road through the Mallina acquired
tenement.
Key Terms of the Acquisition
In substance, the terms of the acquisition are largely in line
with the initial heads of terms arrangement as previously announced
on 5 September 2022.
All reference is to Australian Dollars unless otherwise
stated.
1. In consideration for the payment of a non-refundable cash
amount of $10,000 to Mallina within seven days of the Execution
Date of the agreement, being today (Initial Payment), Mallina will
deliver to Iron Ore Company of Australia Pty Ltd ("IOCA"), the
Company's wholly owned subsidiary, a duly executed company transfer
form, granting those shares in Mallina to IOCA.
2. IOCA will pay a cash amount of $20,000 to Mallina within
fifteen days of a Mining Licence being granted to IOCA in respect
of tenement E 47/3954.
3. The transfer of the Tenement Interest is a conditional
tenement grant and is on approval by DMIRS (Department of Mines,
Industry Regulation & Safety).
4. Within 30 Business Days upon the definition of a Maiden
Inferred JORC Compliant Resource ("Resource") at a grade equal to
or greater than 54% Iron (Fe), IOCA will pay Mallina an amount
equal to $0.50 per tonne of Resource which is located on the area
of the Tenement in cash or fully paid ordinary shares in the
capital of Alien, at the election of IOCA. For clarity, this
payment will only apply to that part of a Resource which is located
on the area of the Tenement and the first time a Resource is
declared so that if two resources are declared over the same
orebody, the payment under the second resource (if the second
resource is larger than the first) is reduced by the previous
payment made. There will not be a second payment made if an
Inferred Resource is later part of a Measured Resource.
5. Within 60 Business Days upon the earlier of:
a. the grant of a mining lease within the boundaries of the Tenement; or
b. a decision to carry out extractive commercial mining on an
area within the Tenement, IOCA will pay Mallina $0.50 per tonne of
Resource in cash or fully paid ordinary shares in the capital of
Alien, at the election of IOCA; and
c. With effect on and from the date that IOCA earns its Tenement
Interest, IOCA grant Mallina a 2% gross revenue royalty on any iron
ore produced from the Tenement by IOCA
.
Figure 3: Tenements surrounding Alien's Hancock Project
The planned construction of a haul road on this western tenement
will allow the transport of material from the Hancock project to
Port Headland, giving the Company complete control over the
project's production. The haul road could also be continued through
the main Hancock tenement to allow its use by neighbouring stranded
tenements, providing Alien with the strategic opportunity to charge
transit fees. This would provide the Company with an additional
income stream to that of the Hancock material itself, further
improving the project's already excellent economics.
For further information please visit the Company's website at
www.alienmetals.uk , or contact
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish
Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Joint Broker)
Harry Ansell / Katy Mitchell
Tel +44 (0) 207 220 1666
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 (0) 20 7138 3204
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 6/2014 AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.
Notes to Editors:
Alien Metals Ltd is a mining exploration and development Company
listed on the AIM market of the London Stock Exchange (LSE: UFO).
The Company's focus is on delivering a profitable, long life direct
shipping iron ore operation based out of the Pilbara in Western
Australia. In 2019, the Company acquired 51% of the Brockman and
Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects
and in December 2022 moved to 90% legal and beneficial ownership.
The Company also acquired 100% of the Vivash Gorge Iron Ore project
in the west Pilbara in July 2022.
The Company acquired 100% of the Elizabeth Hill Silver Project,
which consists of the Elizabeth Hill Historic Mining Lease and the
115km(2) exploration tenement around the mine.
In March 2022 the Company acquired 100% of the former joint
venture interest in the Munni Munni Platinum Group Metals and Gold
Project in the West Pilbara, Western Australia, one of Australia's
major underexplored PGE and base metals projects. Munni Munni holds
a historic deposit containing 2.2Moz 4E PGM: Palladium, Platinum,
Gold, Rhodium.
The Company also holds silver, copper and base metal projects in
various locations around the world however is currently looking at
the best way to divest these for the benefit of shareholders.
Glossary
Sterilisation drilling: Sterilization (or condemnation) drilling
tests areas of a mine site to be sure there are no valuable
minerals there , so that buildings, roads, power lines, pipelines,
waste piles, tailings disposal areas, etc. can be built on the
areas that have been sterilized.
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END
ACQFZGGKNDDGFZM
(END) Dow Jones Newswires
May 05, 2023 02:00 ET (06:00 GMT)
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