Alien Metals AIM:UFO, the AIM-listed precious and base metal exploration company with operations in Mexico and Australia, announced today (5th September) that has entered a binding Heads of Agreement through its wholly-owned subsidiary, Iron Ore Company of Australia, with Mallina Exploration to acquire a strategic tenement bounding its Hancock Project, which would be key to the development of the 10.4 million tonne iron ore project with a 60.4% grade in Western Australia.
The Hancock Project key to strategic development of Alien Metals
Alien also announced that it has applied directly for two additional exploration licences within the Hancock area, ELA47/4605 or ‘Hancock West’, and ELA47/4817 or ‘Hancock Northwest’, which provide future resource growth opportunities.
“The farm-in commitment allows us to include the relevant geotechnical work required from us on the haul road. We therefore view this as coming well within our general project budget. This is a further significant step in de-risking the Project and enabling us to have full control to get the project into production,” he continued.Bill Brodie Good, CEO of Alien Metals, said in a statement: “This is a key strategic acquisition of the tenement application located on the southwestern boundary of Hancock. This underlies the optimum route of the planned haul road to enable extraction of the iron ore from Hancock to market via the shortest and most unencumbered route.”
Brodie Good said that the acquisition would allow Alien Metals to expedite the project and be in a position to start mining in 2023.
The transaction will cost Alien AUD65,000 up front and the company will spend not less than AUD200,000 on development of the tenement and subsequently pay Mallina will pay Mallina an amount equal to AUD0.50 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 Metals.
Alien opened trading at 62p, and was trading at 67p by mid-morning. Alien’s shares have ranged between GBP1.24 and 52p over 52-weekss, offering a -2.5% year-to-date return and -13.8% one-year return giving the exploration company a market capitalisation of around USD30m.
