Alien Metals Ltd (AIM:UFO, OTC:ASLRF) said it has exercised its option with Windfield Metals Pty Limited to acquire an additional 39% interest in the Hancock and Brockman projects and is now the legal and beneficial owner of a 90% direct interest in the licences associated with the projects after closing the deal.
In a statement, Rod McIllree, executive chairman of Alien Metals, commented: "As we continue working towards production at Hancock in 2023 moving to 90% is a logical next step in the project evolution and cements our position in the Pilbara as an emerging potential producer of high grade-high purity, direct shipping, iron ore."
"Alien, together with its 100% owned subsidiary IOCA, remain focused on our 2023 production goal. We would like to thank Windfield for the seamless transaction and welcome them as a long-term shareholder as we continue to build what I believe will be one of Australia's next DSO iron mining operations and add value for all stakeholders including the Karlka Nyiyaparli Aboriginal traditional owners. We look forward to sharing more exciting updates as the project advances through permitting and on to the start of mining," he added.
Completion of the acquisition of the 39% interest was subject to the satisfaction of the following conditions: £60,000 payment in cash; the issue of 260,000,000 Alien common shares and 100,000,000 share purchase warrants, exercisable at 1p on or before 31 December 2025.
Accordingly, the company has now issued Windfield with the 260,000,000 common shares at a price of 0.45p each, representing 4.88% of the enlarged share capital, along with the warrants. Following this issue, Windfield will hold a total of 376,666,666 Alien common shares, representing 7.07% of the enlarged share capital.
As part of the transaction, Alien will transfer its interest in the projects to its 100% owned Australian subsidiary Iron Ore Company of Australia Pty Limited who will become 90% owner and manager.
Alien Metals is a global mining exploration and development company listed on the AIM market of the London Stock Exchange. The company's focus is on starting iron production at Hancock as well as precious, PGM and base metal exploration at its other 100% owned projects.