Alien Metals Ltd (AIM:UFO, OTC:ASLRF) said it plans to exercise its option to acquire an additional 39% interest in the Hancock and Brockman direct shipping iron ore projects in Australia, increasing its direct ownership to 90%.
The acquisition of the additional holding from Windfield Metals Pty Ltd is subject to certain conditions which Alien said it aims to meet by the end of this year.
Alien will pay £60,000 in cash, plus 260 million shares and 100 million share purchase warrants to Windfield on completion.
"Now that Hancock is moving into a production footing it's important to secure our full ownership rights,” said Alien chairman Roderick McIllree. “Obtaining finance from our partners also requires certainty at the licence level and I am delighted to have filed the notice to finalise our move to 90% ownership.”
As part of the transaction, Alien has agreed to transfer its interest in the projects to its wholly owned subsidiary, Iron Ore Company of Australia Pty Ltd (IOCA), which will manage the projects.
"The company and the IOCA team are now fully committed to getting the Hancock iron ore project into production in 2023,” said McIllree.
Earlier this week, Alien announced the appointment of Troy Whittaker, an experienced iron ore executive, as chief executive of IOCA.
READ: Alien Metals hires ex-Fortescue executive Troy Whittaker to run Australian subsidiary