REG - Alien Metals Limited - Renegotiation of Mallina Acquisition

Alien MetalsAnnouncement

05/05/2023 07:00

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RNS Number : 4968Y  Alien Metals Limited  05 May 2023

 

Trading Symbols

AIM: UFO

FWB: I3A1

05 May 2023
 

 

 

Alien Metals Ltd

("Alien" or "the Company")

 

Renegotiation of Mallina Acquisition

Conditional acquisition of Mallina

 

 

Alien Metals Ltd (LSE AIM:UFO), a global minerals exploration and development
company, is pleased to announce it has renegotiated its agreement (see
announcement 5 September 2022), with Mallina Exploration Pty Ltd ("Mallina"),
to fast track the acquisition of the E 47/3752 tenement that adjoins its
flagship Hancock Iron Ore Project ("Hancock") and provides direct strategic
access to the Great Northern Highway.

 

Highlights

·    The Company will acquire Mallina Exploration Pty Ltd.

·    The key terms of the agreement remain largely unchanged from that of
the original agreement; however, the Company has negotiated the removal of the
condition precedent relating to exploration drilling to earn the tenement
interest.

·  Removal of this condition precedent allows the Company to focus on
sterilisation drilling across the Miscellaneous Licence (E 47/3752) to enable
access road construction.

 

Rod McIllree, Executive Director, commented:

"I am pleased to announce that we have successfully brought forward and
concluded the acquisition of the Mallina tenement consolidating our tenement
holding in and around Hancock. Fast tracking this provides us with a strategic
advantage in progressing our project timeline and additionally provides
further exploration upside, allowing us to expand the footprint of known
targets."

 

About the Hancock Project

 

Figure 1: Location of Hancock Iron Ore Project, Western Australia

 

Figure 2: Planned haul road through the Mallina acquired tenement.

 

Key Terms of the Acquisition

In substance, the terms of the acquisition are largely in line with the
initial heads of terms arrangement as previously announced on 5 September
2022.

All reference is to Australian Dollars unless otherwise stated.

1.    In consideration for the payment of a non-refundable cash amount of
$10,000 to Mallina within seven days of the Execution Date of the agreement,
being today (Initial Payment), Mallina will deliver to Iron Ore Company of
Australia Pty Ltd ("IOCA"), the Company's wholly owned subsidiary, a duly
executed company transfer form, granting those shares in Mallina to IOCA.

2.    IOCA will pay a cash amount of $20,000 to Mallina within fifteen days
of a Mining Licence being granted to IOCA in respect of tenement E 47/3954.

3.   The transfer of the Tenement Interest is a conditional tenement grant
and is on approval by DMIRS (Department of Mines, Industry Regulation &
Safety).

4.    Within 30 Business Days upon the definition of a Maiden Inferred JORC
Compliant Resource ("Resource") at a grade equal to or greater than 54% Iron
(Fe), IOCA will pay Mallina an amount equal to $0.50 per tonne of Resource
which is located on the area of the Tenement in cash or fully paid ordinary
shares in the capital of Alien, at the election of IOCA. For clarity, this
payment will only apply to that part of a Resource which is located on the
area of the Tenement and the first time a Resource is declared so that if two
resources are declared over the same orebody, the payment under the second
resource (if the second resource is larger than the first) is reduced by the
previous payment made. There will not be a second payment made if an Inferred
Resource is later part of a Measured Resource.

5.    Within 60 Business Days upon the earlier of:

a.     the grant of a mining lease within the boundaries of the Tenement;
or

b.    a decision to carry out extractive commercial mining on an area
within the Tenement, IOCA will pay Mallina $0.50 per tonne of Resource in cash
or fully paid ordinary shares in the capital of Alien, at the election of
IOCA; and

c.   With effect on and from the date that IOCA earns its Tenement Interest,
IOCA grant Mallina a 2% gross revenue royalty on any iron ore produced from
the Tenement by IOCA

.

Figure 3: Tenements surrounding Alien’s Hancock Project

The planned construction of a haul road on this western tenement will allow
the transport of material from the Hancock project to Port Headland, giving
the Company complete control over the project's production. The haul road
could also be continued through the main Hancock tenement to allow its use by
neighbouring stranded tenements, providing Alien with the strategic
opportunity to charge transit fees. This would provide the Company with an
additional income stream to that of the Hancock material itself, further
improving the project's already excellent economics.

 

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

Beaumont Cornish Limited (Nomad)

James Biddle / Roland Cornish

Tel: +44 (0) 207 628 3396

 

WH Ireland Ltd (Joint Broker)

Harry Ansell / Katy Mitchell

Tel +44 (0) 207 220 1666

 

BlytheRay (Financial PR)

Tim Blythe / Megan Ray / Said Izagaren

Tel: +44 (0) 20 7138 3204

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 6/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED
IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR.

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 December 2022 moved to 90% legal and beneficial ownership. The
Company also acquired 100% of 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 Mining Lease and the 115km(2) 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 various
locations around the world however is currently looking at the best way to
divest these for the benefit of shareholders.

 

 

 

Glossary

Sterilisation drilling: Sterilization (or condemnation) drilling tests areas
of a mine site to be sure there are no valuable minerals there, so that
buildings, roads, power lines, pipelines, waste piles, tailings disposal
areas, etc. can be built on the areas that have been sterilized.

 

 

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