REG - Alien Metals Limited - Placing to raise £1.0 million

Alien MetalsAnnouncement

22/05/2025 16:15

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RNS Number : 8543J  Alien Metals Limited  22 May 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (596/2014/EU) AS THE SAME HAS BEEN RETAINED IN UK
LAW AS AMENDED BY THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI
2019/310). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION
IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

 

22 May 2025

Alien Metals Ltd

("Alien Metals", the "Company" or the "Group")

 

Placing to raise £1.0 million

 

Appointment of Turner Pope Investments (TPI) Limited as Joint Broker

 

 

Alien Metals Ltd (AIM:UFO), a global minerals exploration and development
company, is pleased to announce a placing for 1,250,000,000 new common shares
of no par value each in the Company ("Common Shares") (the "Fundraise Shares")
at an issue price of 0.08p (the "Placing Price") to raise gross proceeds of
£1,000,000 (the "Fundraise") from certain institutional and other investors
(the "Placing").

 

In connection with the Placing, the Company will issue 416,666,666 warrants to
subscribers, on the basis of one (1) warrant for every three (3) new Fundraise
Shares subscribed. Each warrant entitles the holder to subscribe for one
additional Common Share at an exercise price of 0.12p (representing a 50%
premium to the Placing Price), exercisable for a period of 12 months from the
date of issuance.

 

The net proceeds of the Fundraise will be principally used to advance the
Company's Hancock iron ore project and Pinderi Hills PGM project in Western
Australia and for general working capital purposes.

 

The Fundraise Shares will represent approximately 14.16 per cent. of the
Company's enlarged issued share capital (as enlarged by the Fundraise Shares).
The Placing Price represents a discount of approximately 15.79 per cent. to
the mid-market closing price on AIM of 0.095 pence per Common Share on 21 May
2025, being the latest practicable business day prior to the publication of
this Announcement.

 

The Company has also extended its existing funding facility previously
announced on 15 March 2024 such that the undrawn balance of that facility
remains available to the Company for drawdown until 31 December 2025 which
provides flexibility to the Company.

 

Guy Robertson, Executive Chairman, commented:

 

"The £1 million Fundraise, together with the A$0.9 million cash proceeds
received from our zero-cost, joint venture with West Coast Silver (formerly
Errawarra Resources), materially enhances Alien's financial position. The
Elizabeth Hill Silver Project is now being advanced at no cost to Alien, with
West Coast Silver funding all activities through to a decision to mine. Alien
retains a 30% project interest and a 12.1% equity stake in West Coast Silver,
ensuring we maintain significant upside exposure to what is now their
principal asset."

 

"Proceeds from the Fundraise will be directed primarily toward advancing the
Hancock Iron Ore Project, where we've recently secured two new exploration
leases. Our geological team is preparing to mobilise for a rock chip sampling
and assay programme across these new tenements, which will inform a follow-on
drill campaign targeting resource expansion. Hancock continues to benefit from
compelling fundamentals - a high-grade, low-cost direct shipping ore project
with a granted mining lease and strong development economics."

 

"We are also encouraged by signs of a recovery in iron ore markets and the
growing appetite on the ASX for high-quality iron ore assets. With the support
of Sternship Advisers, we are actively engaging with potential strategic and
funding partners to progress Hancock in line with this strong sector
interest."

 

"With multiple near-term catalysts across Hancock, Elizabeth Hill, and Pinderi
Hills, Alien remains focused on unlocking value while preserving shareholder
capital through targeted exploration and non-dilutive partnerships."

 

Placing Highlights

 

·     The Company has raised £1 million before expenses through the
Placing arranged by Turner Pope Investments (TPI) Limited ("TPI" or the
"Bookrunner") by way of the issue of 1,250,000,000 new Common Shares (the
"Fundraise Shares") at the Placing Price.

·     The Fundraise Shares will represent approximately 14.16 per cent.
of the enlarged issued share capital (as enlarged by the Fundraise Shares).

·     The net proceeds of the Placing will be principally used to advance
the Company's iron ore project, and PGM project, in Western Australia and for
general working capital purposes, as follows:

o  Complete additional permitting and clearances at Hancock

o  Resource Expansion via field-based programs at Hancock

o  Undertake exploration at Pinderi Hills

o  Working capital

 

As highlighted in the Company's updated corporate presentation (which can be
found on the Company's website), Alien Metals is progressing towards a number
of key near-term catalysts. At the Hancock Iron Ore Project, the Company
anticipates the commencement of exploration activities during H2 2025,
focusing on the newly defined Mallina Target, which is considered highly
prospective for additional iron ore mineralisation adjacent to the existing
Hancock deposit. These activities are aimed at expanding the current 8.4Mt
resource. Further details will be provided as appropriate in due course.

A copy of the updated corporate presentation can be found here:
https://www.alienmetals.uk/wp-content/uploads/UFO-corporate-slide-deck-May-2025.pdf
(https://www.alienmetals.uk/wp-content/uploads/UFO-corporate-slide-deck-May-2025.pdf)

 

 

Extension of Funding Facility

 

The Company is pleased to announce that the funding facility secured with
Bennelong Resource Capital Pty Limited ("Bennelong"), a shareholder in the
Company with a current holding of 6.1%, and announced on 15 March 2024 (the
"Facility"), has been extended with  the availability period for drawdown now
being to 31 December 2025 with an undrawn amount of AUD 400,000 still
available, should the Company require it prior  to its expiry. Although there
are no current plans to draw further on the Facility, the Company and
Bennelong have agreed that it will add flexibility as the Company progresses
its strategy.

 

Appointment of Joint Broker

TPI is acting as agent for and on behalf of the Company in connection with the
Placing and has been appointed as joint broker to the Company, such
appointment to take effect from Admission (as defined below).

 

As part of its fee, TPI has agreed to receive 25,000,000 new Common Shares
("Broker Fee Shares") in lieu of cash settlement.

 

Broker Warrants

 

In connection with the Placing, TPI will be issued with warrants ("Broker
Warrants") to subscribe for 212,500,000 new Common Shares exercisable at the
Placing Price. The Broker Warrants have a term of 3 years from the date of
admission to trading on AIM.

 

 

Admission and Total Voting Rights

 

Application will be made to the London Stock Exchange for Admission of the
Fundraise Shares and Broker Fee Shares to trading on AIM ("Admission"). It is
expected that Admission will become effective and dealings in the Fundraise
Shares and Broker Fee Shares will commence at 8.00 a.m. on or around 30 May
2025.

 

The Fundraise Shares and Broker Fee Shares will be issued fully paid and will
rank pari passu in all respects with the Company's existing Common Shares.

 

Following Admission, the total number of Common Shares in the capital of the
Company in issue will be 8,853,358,786 with voting rights. This figure may be
used by shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or a change
to their interest in, the Company's issued share capital pursuant to the
Company's Articles.

 

In connection with the Placing, the Company has entered into a placing
agreement with TPI ("Placing Agreement") which includes customary terms and
conditions. The Placing is conditional, inter alia, on there being no breach
of the obligations under the Placing Agreement prior to admission of the
Placing Shares to trading on AIM becoming and upon Admission occurring by not
later than 30 May 2025 (or such later date as the Company and TPI may
determine, but not later than 13 June 2025).

 

For further information on the Company, please visit www.alienmetals.uk
(http://www.alienmetals.uk)  or contact:

Alien Metals Limited

Guy Robertson
T: +44 (0)20 7983 521488 (c/o Yellow Jersey)

Strand Hanson (Nominated Adviser)
James Harris / James Dance / Robert Collins

Tel: +44 (0) 207 409 3494

Zeus Capital Limited (Joint Broker)
Harry Ansell/Dan Bristowe/Katy Mitchell/Andrew de Andrade

Tel: +44 (0) 203 829 5000

Turner Pope (Joint Broker and Bookrunner)

Andy Thacker/James Pope

Tel: +44 (0) 203 657 0050

CMC Markets (Joint Broker)

Douglas Crippen

Tel: +44 (0) 203 003 8632

Yellow Jersey PR (Financial PR)

Charles Goodwin / Shivantha Thambirajah / Zara McKinlay

Tel: +44 (0) 20 3004 9512
alienmetals@yellowjerseypr.com (mailto:alienmetals@yellowjerseypr.com)

 

 

 

 

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