REG - Alien Metals Limited - Short term funding facility of up to US$1 million

Alien MetalsAnnouncement

03/07/2023 07:00

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RNS Number : 7151E  Alien Metals Limited  03 July 2023

 

Trading Symbols

AIM: UFO FWB: I3A1

3 July 2023

 

Alien Metals Ltd

 

Alien executes short term funding facility of up to US$1 million

 

Alien Metals Ltd (LSE AIM:UFO) ("Alien" or "Company"), a global minerals
exploration and development Company, advises that it has entered into a short
term funding facility on terms outlined below.

 

The facility of up to US$1 million will provide the Company medium
term capital needs, and further in the event the warrants are exercised over
a 12 to 36 month period it could raise a further US$1 million, bringing
total funding of up to US$2m over the relevant period.

 

This funding has been secured to meet immediate funding needs whilst the
Company considers various longer term funding options required in connection
with its focus on the development of the Hancock Project.

 

The Company proposes to provide a strategy and board structure update in July
2023.

 

      TERMS OF FUNDING FACILITY

·    Lender: Bennelong Resource Capital Pty Limited, a long term
shareholder in the Company, with a current holding of 6.34%.

·    Convertible Securities: Convertible securities of up to US$1,000,000
(Convertible Securities), to be drawn in equal tranches: Tranche 1 US$500,000
and Tranche 2 US$500,000.

·    Face Value and Purchase Price: US$1 per Convertible Security.

·    Commitment Fee and Establishment Fee: 3% of the Facility and
US$10,000 respectively, to be deducted from Tranche 1.

·    Commitment Warrants: 10,000,000 warrants to subscribe for one
Ordinary Share each with a strike price of a 35% premium to the 10-day VWAP
prior to the date of the deed, being 0.5198p (including the premium), and an
expiry date 36 months after the date of issue.

·    Interest: SOFR (Secured Overnight Financing Rate) plus 8% per annum.

·    Repayment date: 12 months.

·    Conversion Price: the balance due under the Funding Facility can be
converted into Ordinary Shares at the option of the Lender at the lower of:

(a)          15% discount to the VWAP over the ten (10) trading days
prior to the date of this deed, being 0.3356p (including the discount);

(b)          15% discount to the VWAP over the ten (10) trading days
prior to Conversion Date; or

(c) the price per Ordinary Share offered by the Company in any equity capital
raising offered during the Availability Period.

(d) the conversion price will be not be lower than a 30% discount to the five
(5) day VWAP prior to the date of this deed, being 0.2695p (Including the
discount).

·    Conversion Warrants: on the basis of one warrant for each share
issued, which will have a strike price equal to the lower of a 35% premium to
the VWAP on the 10 trading days prior to:

i)   the date of this deed; and

ii)  the relevant Conversion Date.

·    Repurchase Premium: the principal sum plus the percentage that is the
same percentage by which the amount of the VWAP exceeds the issue price of
ordinary shares under the first equity raising of Ordinary Shares that occurs
after the date of this Deed (if any) over the ten trading days prior to the
announcement of the capital raising, but not greater than 20%, on the
Principal Sum Outstanding.

·    Withdrawal fee: 2% of the facility limit in the event of withdrawal.

·    Drawdown structure: Tranche 1 within 5 days of notice. Tranche 2
subject to mutual agreement between the Parties.

 

The funds raised under the Facility will be used for general working capital
needs.

 
For further information please visit the Company's website at
www.alienmetals.uk (http://www.alienmetals.uk/)

, (http://www.alienmetals.uk/)
 or contact:
 
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish

www.beaumontcornish.com (http://www.beaumontcornish.com)

Tel: +44 (0) 207 628 3396
 
WH Ireland Ltd
Harry Ansell / Katy Mitchell
Tel +44 (0) 207 220 1666
 
BlytheRay (Financial PR)
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 December 2022 moved to 90% legal and beneficial ownership. 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 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.

 

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