REG - Alien Metals Limited - Significant Transaction to secure JV Partner

Alien MetalsAnnouncement

20/05/2025 08:15

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RNS Number : 3839J  Alien Metals Limited  20 May 2025

Trading Symbols

AIM: UFO

FWB: I3A1

 

20 May 2025

Alien Metals Limited

 

("Alien" or the "Company")

 

Alien Metals completes significant Transaction to secure Joint Venture partner
for West Australian Silver Project

Alien Metals Limited (AIM: UFO), a minerals exploration and development
company, further to the Company's announcement on 24 March 2025 (the
"Announcement"), is pleased to announce that its joint venture transaction
with Errawarra Resources Ltd ("Errawarra") (ASX: ERW) (to be renamed West
Coast Silver Limited (ASX: WCE)) for the Elizabeth Hill Silver Project in the
central Pilbara region of Western Australia has been approved by Errawarra
shareholders at a general meeting held on 19 May 2025.

Highlights

·    Errawarra, via its wholly owned subsidiary, Crest Silver Pty Ltd
("Crest"), has acquired a 70% interest in the Elizabeth Hill tenement
(M47/342) (the "Elizabeth Hills Assets") as well as 70% of the rights to
explore for, and mine, silver from the Pinderi Hill tenements (the "Pinderi
Hill Assets", and together with the Elizabeth Hill Assets, the "Assets") (the
"Transaction").

·    Errawarra has confirmed that all conditions precedent to the
transaction have been completed. Pursuant to the terms of both the Elizabeth
Hill JV Agreement and Pinderi Hills JV Agreement, a project joint venture
holding the Assets (the "JV") has now been formed. Alien holds the remaining
30% interest in the JV, with Errawarra holding 70% and acting as manager of
the JV.

·    Errawarra will operate and fund the JV through to a decision to mine.

·    In conjunction with the Transaction, Errawarra has successfully
completed a capital raising of A$3 million (the "Placement") from
institutional and sophisticated investors, which will fund the drill
programme, which is expected to commence shortly.

·    The total consideration value to Alien is approximately A$2.5
million, comprising cash of approximately A$0.9 million and net 30.5 million
Errawarra shares (following sell down of 14 million of the 44.5 million
Consideration Shares, as detailed in the Announcement) with current value of
A$1.6 million. Following completion of the Transaction, Alien retains a 30%
interest in the Elizabeth Hill Silver Project, which has significant value
being Errawarra's principal asset.

·    Alien Metals has received in aggregate approximately A$0.9 million in
cash consideration, which will be applied to working capital and further
development of the Hancock iron ore and Pinderi Hills platinum group metals
projects.

·    The Transaction ensures the Company retains significant exposure to
upside through the 30% JV interest and resultant 12.1% equity stake in
Errawarra (following sell down of 14 million of the 44.5 million Consideration
Shares, as detailed in the Announcement).

 

Further information on the Transaction can be found in the Company's
Announcement.

 

Elizabeth Hill Silver Project Overview

Elizabeth Hill, one of Australia's highest-grade silver projects, has a proven
production history outlined below:

·    High-grades enable low processing tonnes: 1.2Moz of silver was
produced from just 16,830t of ore at ahead grade of 2,194g/t (77.4 oz/t Ag).

·    Previous mining operation ceased abruptly in 2000 because of low
silver prices (US$5/oz) 1  (#_ftn1) and a dispute between the previous joint
venture parties.

·    Simplistic historical processing technique: native silver was
recovered via low-cost gravity separation due to high grades and large silver
nugget sizing.

·    Untapped potential remains in and around the historic mine site, with
limited, outdated drilling and geophysics deployed.

·    Tier-1 Mining Jurisdiction - located on a mining lease with
processing facilities adjacent at the nearby Radio Hill site.

Figure 1 - Project Location

 

Capitalised terms in this announcement have the same meanings as ascribed to
them in the Company's Announcement, unless indicated otherwise.

 

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

Strand Hanson (Financial and Nominated Adviser)

James Harris / James Dance / Robert Collins

Tel: +44 (0) 207 409 3494

 

Zeus Capital Limited (Joint Broker)

Harry Ansell / Katy Mitchell

Tel +44 (0) 203 829 5000

 

CMC Markets (Joint Broker)

Douglas Crippen

Tel: +44 (0) 203 003 8632

 

Yellow Jersey (Financial PR)

Charles Goodwin / Shivantha Thambirajah / Zara McKinlay

Tel: +44 (0) 203 004 9512

 

Notes to Editors

Alien Metals Limited is a mining exploration and development company listed on
the AIM market of the London Stock Exchange (AIM: UFO). The Company's focus is
on delivering a profitable direct shipping iron ore operation from it 90%
Hancock iron ore project in the central Pilbara region of Western Australia.
The Hancock tenements currently contain a JORC-compliant resource of 8.4Mt
iron ore @ 60% Fe and offers significant exploration upside which is targeted
to deliver a mining operation of 2Mtpa for 10 years.

These Hancock Project tenements have direct access to the Great Northern
Highway, which provides an essential export route to export facilities at Port
Hedland, from where more than 500Mt of iron ore is exported annually (30% of
global production). The Company also has an interest in two iron ore
exploration projects Brockman and Vivash, located in the West Pilbara.

The Company owns one of Australia's largest PGM deposits, Munni Munni which
hosts a deposit containing a historic resource of 2.2Moz PGM (Palladium,
Platinum, Gold, and Rhodium). The Company has recently entered into a joint
venture with West Coast Silver Limited (Alien 30% West Coast Silver 70%) for
the development of Elizabeth Hill Silver Project, located near Karratha in the
Pilbara, which consists of the Elizabeth Hill Mining Lease and exploration
tenements surrounding the historical silver mine which has produced some of
Australia's highest-grade silver ore during the late 1990's.

 1  (#_ftnref1) www.kitco.com/charts/silver

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