REG - Alien Metals Limited - IOCA executes MOU for iron ore bunker allocation

Alien MetalsAnnouncement

04/11/2022 07:00

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RNS Number : 2757F  Alien Metals Limited  04 November 2022

 

 

Trading Symbols

AIM: UFO

FWB: I3A1

4 November 2022

 

Alien Metals Ltd

("Alien" or "the Company")

 

IOCA executes MOU for iron ore bunker allocation at Pilbara Ports Utah Point

 

Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development
Company, is pleased to announce that its wholly owned subsidiary, Iron Ore
Company of Australia Pty Ltd ("IOCA") has entered into a Memorandum of
Understanding ("MOU") to enter in an Agreement for the sharing of bunker
allocation at the Pilbara Ports Authority's Utah Point export facility with
Element 25 Ltd (ASX Code: E25) in relation to the Company's Hancock iron ore
project ("Hancock") located in the Pilbara, Western Australia.

 

 

Highlights:

·    The MOU provides a framework for:

o  sharing of the E25 existing bunker allocation at Utah Point,

o  sharing of offsite storage capacity within proximity of the Port Hedland
Port,

o  partnership opportunities in relation to:

§ sub-contractor engagement targeting operational flexibility and reductions
to logistics costs; and

§ improve bunker utilisation and overall net tonnage throughput.

o  reviewing investment opportunities to both parties' benefit.

·    IOCA and E25 will work towards executing a formal agreement in Q1
2023.

·    E25 is a manganese producer located immediately south of Newman,
Western Australia.

·    Discussions continue with the Pilbara Ports Authority regarding an
IOCA independent allocation at Utah Point.

 

Roderick McIllree, Chairman of Alien Metals, commented: "Execution of this MOU
with E25 is an important step towards unlocking the export capacity required
for Hancock. We will continue to work with the Pilbara Ports Authority to
obtain an independent export allocation at the Utah Point facility in line
with our production profile over time however this MOU not only gives us
immediate access but also potentially paves the way for IOCA to increase its
production capacity through Port Hedland to more than our stated 1.2mt/pa."

 

Justin Brown, Managing Director of E25 commented: "The opportunity to work
with Alien Metals to share subcontractors, optimise transport infrastructure
utilisation and overheads as well as overflow storage will assist both parties
to reduce logistics costs. The opportunity may also present E25 with an
opportunity to charter larger vessels which will further reduce sea freight
and improve throughput rates. The cooperation will further assist in providing
E25 the ability to put additional material from our planned expansion and
optimisation of Butcherbird through Utah Point. Ultimately, we also see the
opportunity to reduce our carbon footprint in pursuit of our goal to deliver
zero carbon manganese to the fast-growing EV battery market."

Key Terms of the MOU

The non-binding MOU provides a framework for the parties to negotiate an
agreement for IOCA to access existing bunker allocation and export capacity at
the Pilbara Port Authority's Utah Point export facility at a rate of more than
one (1) shipment per calendar month.

The MOU also provides the framework for IOCA to access up to 40,000t of
stockpile offsite storage at the E25 facility near Utah. This provides the
opportunity to "sprint" additional tonnage to the port whilst loading thereby
increasing total tonnes shipped and decreasing the costs overall of each
shipment.

 

Pilbara Ports Authority - Utah Point Export Facility

As announced on 24 October 2022, the Company continues to engage with the
Pilbara Ports Authority (PPA) for its own direct access to the Utah Point
Public User Facility at Port Hedland, Western Australia for export of iron
ore, located approximately 425km from Hancock. High level meetings were
recently held in Perth and Port Hedland to highlight the economic potential of
Hancock and the need for port allocation. Recent communication from the PPA
has continued to encourage the Company that it will receive an export
allocation at this facility in line with its production profile for next year.
This agreement with E25 provides a pathway to early port access whilst this
process is completed.

 

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

 

Alien Metals Limited

Rod McIllree, Executive Chairman

Bill Brodie Good, CEO

Tel: +44 (0) 20 7138 3204

 

Beaumont Cornish Limited (Nomad)

James Biddle / Roland Cornish

www.beaumontcornish.com

Tel: +44 (0) 207 628 3396

 

WH Ireland Ltd (Joint Broker)

Harry Ansell / Katy Mitchell

Tel +44 (0) 207 220 1666

 

Turner Pope Investments (TPI) Limited (Joint Broker)

Andrew Thacker / James Pope

Tel: +44 (0) 20 3657 0050

 

BlytheRay (Financial PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 (0) 20 7138 3204

 

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 November 2022 exercised its option to move to 90% once certain
CP's are satisfied. The Company also acquired 100% 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 Silver Mine Mining Lease and the 115km2
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 Mexico
however is currently looking at the best way to divest these for the benefit
of shareholders.

 

 

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