REG - Alien Metals Limited - Acquisition of Munni Munni Project Completed

Alien MetalsAnnouncement

22/03/2022 07:16

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RNS Number : 5728F  Alien Metals Limited  22 March 2022

 

 

 

Trading Symbols

AIM: UFO

FWB: I3A1

 

22 March 2022

Alien Metals Ltd

("Alien Metals" or "the Company")

 

Acquisition of Major Platinum and Palladium Project in Australia Completed

 

Follow the link to view the announcement in full including all figures:

http://www.rns-pdf.londonstockexchange.com/rns/5728F_1-2022-3-22.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5728F_1-2022-3-22.pdf)

 

Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development
company, is pleased to advise that the Company has completed the acquisition
of a 100% interest in the Munni Munni Platinum Group Metals and Gold Project
in the West Pilbara, Western Australia ("Munni Munni") ("Acquisition").  As
announced on 24 November 2021, the Munni Munni Project is currently subject to
a joint venture between Artemis Resources Limited (ASX/AIM:ARV) and Platina
Resources Limited (ASX:PGM).

 

Highlights:

-      Acquisition of a project containing Palladium and Platinum Group
Elements (PGE) plus significant quantities of other strategic metals including
Rhodium, Nickel and Copper.

-      Potential to extend the historic resource and identify new
mineralised systems in both untested additional PGE bearing reefs and the
larger base metal system associated with the regional geology.

-      Consolidation of the highly prospective Munni Munni and Elizabeth
Hill project areas for the first time in over 30 years.

 

Bill Brodie Good, Chief Executive Officer & Technical Director of Alien
Metals, commented:

"With the completion of the Munni Munni acquisition, we have further enhanced
our position in the West Pilbara region. The Company has now secured 100% of
one of Australia's largest undeveloped PGE projects at a time when global
geopolitics has placed significant supply constraints on strategic metals like
Palladium and Platinum. It is important to note that almost 60% of the
historically defined contained metal at Munni Munni is Palladium. The security
of supply for these critical minerals will become a key factor for global
governments and industry.

 

"We are now in a position to start technical work on the project and
consolidate activities undertaken over the last 20 years to advance the
project as a priority. Additionally, we are excited to have a larger
geological setting to incorporate aspects from the different locations of the
intrusion into an overall project and concept.

 

"We also welcome both Artemis Resources and Platina Resources to the register
as shareholders of the Company".

 

 

Alastair Clayton, Executive Director, Artemis Resources commented:

"We are pleased to become a significant shareholder of Alien Metals who have
been able to consolidate for the first time in many years one of Australia's
largest PGE projects. Artemis is supportive of Alien's plans to explore and
develop what could become a major strategic metals project and we look forward
to being a long-term shareholder of the Company."

 

Upcoming work programmes

 

Over the last couple of months, the Company has been establishing a team of
experts to assist with driving the Munni Munni Project forward. This includes
specialists in PGE geology, processing and metallurgy, product marketing and
offtake and investment finance.

 

In conjunction with a Perth-based technical consulting group, the Company
plans to commence on-ground exploration at Munni Munni as soon as possible,
once all appropriate permitting is in place. This work could include mapping
and sampling at surface, follow-up trenching, in-fill, extension and
exploration drilling on various targets both known and new, as well as looking
at development options.

 

The Munni Munni Project

 

The Munni Munni Project hosts the largest ultramafic intrusion in the West
Pilbara and is one of the biggest undeveloped primary Platinum Group Elements
('PGE') Resources in Australia.  The historic non-compliant JORC 2004
Resource estimate* implied 24Mt @ 2.9g/t Platinum Group Element (PGE) and gold
for 2.2Moz PGM3, with around 95% of this resource estimate in the Measured and
Indicated categories. The historic resource hosts 1.14Moz palladium, 0.83Moz
platinum, 152Koz gold and 76Koz rhodium. The Munni Munni Project is considered
to be one of Australia's largest PGE deposits with in excess of A$20m spent on
the project with various feasibilities studies undertaken in the last 20 plus
years. Previous project joint venture partners include one of South Africa's
largest platinum palladium producers, Lonmin.

Munni Munni is considered to be an advanced exploration project which, with
relevant expertise, could be explored quickly and have updated feasibility and
development plans, all of which would be undertaken in a Tier 1 mining
jurisdiction of Western Australia.

 

Acquisition terms

 

Pursuant to the acquisition agreements with Artemis Resources and Platina
Resources, the Company has issued and allotted 138,703,396 Ordinary Shares of
no par value ("Shares") to Platina Resources Limited at a deemed issue price
0.7935 pence per share, being equal to the VWAP of the Company's Common Shares
in the 15 trading days before 23 November 2021 and 358,617,818 Shares to
Artemis Resources Limited at a deemed price of 0.699 pence per share, being
equal to the VWAP of the Company's Common Shares in the 15 trading days before
21 December 2021 (Consideration Shares) and will pay a total of A$500,000 to
the vendors. The shares will be subject to escrow over a period of between 3
to 12 months, as follows: ~25% of the Consideration Shares being subject to 3
months lock-in, ~25% subject to 6 months lock-in, and the balance (~50%)
subject to 12 months lock-in. Following Admission, the Consideration Shares
will represent, in aggregate, approximately 10.47% of the Company's enlarged
issued share capital with Platina Resources Ltd holding 2.92% and Artemis
Resources Limited 7.55% respectively of the Company's enlarged issue share
capital.

Exercise of Warrants

In addition, following the receipt of Exercise Notices, the Company has issued
66,666,666 ordinary shares of no par value at an issue price of 0.19 pence per
share, 26,610,661 ordinary shares of no par value at an issue price of 0.25
pence per share and 3,333,333 ordinary shares of no par value at an issue
price of 0.3 pence per share, totalling 96,610,660 Ordinary Shares (together
"New Ordinary Shares").

The Consideration Shares and the New Ordinary Shares will rank pari passu with
existing Ordinary Shares in issue and application will be made to the London
Stock Exchange for the 497,321,214 Consideration Shares and the 96,610,660 New
Ordinary Shares to be admitted to trading on AIM. Admission of the
Consideration Shares is expected to become effective at 8:00 am on or around
23 March 2022.

Following Admission, the Company will have 4,751,388,276 Ordinary Shares of no
par value in issue. The Company has no shares in treasury, therefore the
figure of 4,751,388,276 should be used by shareholders for the calculations by
which they will determine if they are required to notify their interest in, or
a change of their interest in, the share capital of the Company under the
FCA's Disclosure and Transparency Rules.

 

Figure 1: Location of Munni Munni Project, Pilbara, Western Australia and
related Alien Tenements, March 2022

 

Table 1: Summary of non-compliant JORC 2004 Munni Munni resource published by
Artemis Resources and Platina Resources

*Resource published under 2004 JORC code and accordingly is not reported under
a Standard under the AIM Rules. The historic resource figures are derived from
the announcement s  on the ASX published by Helix Resources on 3rd April 2003

 

 

For further information please visit the Company's website
at www.alienmetals.uk, or contact:

 

 Alien Metals Limited                                       Turner Pope Investments (TPI) Limited (Joint Broker)

 Bill Brodie Good, CEO & Technical Director                 Andy Thacker / James Pope

 Tel: +44 (0)20 3811 2144                                   Tel +44 (0)20 3657 0050

 Beaumont Cornish Limited (Nomad)                           WH Ireland Ltd (Joint Broker)

 James Biddle/ Roland Cornish                               Harry Ansell / Katy Mitchell

 www.beaumontcornish.com (http://www.beaumontcornish.com)   Tel +44 (0)20 7220 1666

 Tel: +44 (0)20 7628 3396

 Yellow Jersey PR (Financial PR)

 Sarah Hollins / Annabel Atkins /

 James Lingfield

 alienmetals@yellowjerseypr.com (about:blank)

 Tel: +44 (0) 20 3004 9512

Notes to Editors

 

Alien Metals Ltd is a global mining exploration and development company listed
on the AIM market of the London Stock Exchange (LSE: UFO). The Company's focus
is on precious and base metal commodities, with its operations located in
proven mining jurisdictions and it has embarked upon an acquisition-led
strategy headed by a high-quality geological team to build a strong portfolio
of diversified assets. In 2019, the Company acquired 51% of the Brockman and
Hancock Ranges high-grade (Direct Shipping Ore) iron ore projects and with a
conditional agreement to increase its interest to 90% in May 2021 also being
put in place.

 

In 2020 the Company agreed to acquire 100% of the Elizabeth Hill Silver
Project, which consists of the Elizabeth Hill Historic Silver Mine Mining
Lease and the 150km2 exploration tenement around the mine. The Company also
holds two silver projects, San Celso and Los Campos, located in Zacatecas
State, Mexico, Mexico's largest silver producing state, which produced over
190m oz of silver in 2018 alone, accounting for 45% of the total silver
production of Mexico for that year. The Company also holds a Copper Gold
project in the same region, Donovan 2.

 

In November and December 2021, the Company entered into two Binding Heads of
Agreement with ASX listed Platina Resources Ltd and Artemis Resources Limited
to acquire 100% of the current 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 was also awarded an Exploration Licence in Greenland in late 2020,
which surrounds the world class Citronen Zinc-Lead deposit.

 

Glossary

Mineral Resource - a concentration or occurrence of solid or liquid material
of economic interest in or on the Earth's crust in such form, grade (or
quality), and quantity that there are reasonable prospects for eventual
economic extraction. The location, quantity, grade (or quality), continuity
and other geological characteristics of a Mineral Resource are known,
estimated or interpreted from specific geological evidence and knowledge,
including sampling. Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured categories.

Mineral resource classification - is the classification of mineral resources
based on an increasing level of geological knowledge and confidence.

Mt - Million Tonnes

Moz - Million Ounces

g/t - Grams per Tonne

Pt - Platinum

Pd - Palladium

Rh - Rhodium

Cu - Copper

Ni - Nickel

Au - Gold

PGE - Platinum Group Elements

 

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