29 April
2024
Alien Metals Ltd
("Alien Metals" or "the Company")
Alien Executes up to A$4 million Farm-Out
Joint Venture for Lithium Rights on Pinderi Hills Project,
including A$0.5 million Subscription
Alien Metals (AIM: UFO)
(Alien or Company), a company focused on the exploration and
development of the Hancock iron ore Project ("Hancock Project") and the Pinderi
Hills project in Western Australia ("Pinderi Hills Project"), is pleased to
announce that it, via its wholly owned subsidiary
Alien Metals Australia Pty Ltd ("AMA"), has entered into a joint
venture with Errawarra Resources Ltd (ASX: ERW) ("Errawarra") (together with AMA, the
"Parties") (the
"Agreement") in respect of
the lithium rights on the Pinderi Hills Project located in the West
Pilbara (the "Project").
Highlights:
•
Errawarra, the joint venture party, has the potential to earn up to
a 50% interest in the lithium rights in the Project by spending up
to A$4 million with the first A$500,000 being by way of a
subscription for common shares in the capital of the Company
("Common
Shares").
• Alien Metals has undertaken
limited exploration for lithium in this area, however the Agreement
provides an opportunity to facilitate the development of the
Project whilst allowing the Company to remain focussed on the
development of the Hancock Project and Pinderi Hills nickel,
copper, and platinum group metals projects.
• The Pinderi Hills area
covers a major ultramafic/mafic complex which is potentially
prospective for lithium bearing pegmatites.
• The West Pilbara is a
prospective emerging lithium province, with interpreted pegmatite
dykes (see Figure 2) which the Directors of Alien believe are
comparable to the recently discovered Lithium Caesium Tantalum
("LCT") pegmatites within
the Andover intrusive mafic-ultramafic Complex located 35km to the
north-east.
Joint Venture
Terms and Additional Details
Under the terms of the Agreement, Errawarra is
to spend up to a total of A$4,000,000 to earn up to a 50%
participating interest in the joint venture which will hold the
lithium rights on the Project over a period of 60 months, from
entering into the Agreement, as follows:
• Upon execution of the Agreement,
a one-off payment of A$500,000 to Alien by way of a subscription
for 130,000,000 new Common Shares at a price of 0.2p (the
"Subscription Shares"),
being the VWAP over the ten trading days prior to the
date of the Agreement (the "Subscription"). The proceeds of the
Subscription will be applied to general working capital
purposes.
• Stage 1: Errawarra will earn-in
for a 25% participating interest in the joint venture by spending
A$1m on the Project within 24 months of the date of entering into
the Agreement; and
• Stage 2: Errawarra will
earn-in for a further 25% participating interest in the joint
venture by spending a further A$2.5m on the Project within 60
months of the date of entering into the Agreement.
At the conclusion of Stage 2, Errawarra's
interest in the Project will be 50% and from that point, the
Parties will contribute towards any Project related expenditure on
a pro-rata basis.
If Errawarra does not meet the required spend
(as noted above) in either Stage 1 or Stage 2, its interest in the
joint venture will reduce proportionally.
If AMA chooses not to contribute on a pro-rata
basis following the completion of Errawarra's Stage 2 earn-in,
AMA's 50% interest will dilute on a pro rata basis, and in the
event that AMA's interest in the joint venture falls below 10% then
its remaining holding will convert to a 2% gross revenue royalty
(the "Royalty").
Errawarra retains a first right of refusal to
buy back the Royalty, should Alien wish to sell and Errawarra will
have first right of refusal to acquire all the remaining mineral
rights to the Pinderi Hills nickel, copper, and platinum group
metals projects.
The lithium rights the subject of the Agreement
("Rights") incurred no revenue or costs in the last 12-month
period, and accordingly there are no attributable profits or
losses. Further the Rights have a zero carrying value in the
Company's financial statements.
AMA and Errawarra have agreed to negotiate a
full form joint venture agreement incorporating the above terms
within three months from the date of the Agreement.
Lithium
Pegmatite Targets Identified
The Pinderi Hills tenements are in an area
believed to be prospective for lithium bearing pegmatites due to
the presence of granites belonging to the Orpheus suite of rocks.
These granites are associated with lithium pegmatite emplacement in
the significantly mineralised lithium pegmatite corridor located
some 20km to the north.
LCT pegmatite target areas have been identified
near "hot" granites in greenstone mafic-ultramafic rocks terrane
within the Alien tenements.
A large number of pegmatite type features were
identified in the Maitland Intrusive Complex which are interpreted
as possible pegmatite dyke swarms. These interpreted pegmatite
dykes are shown in more detail in Figure 2 and appear comparable to
the recently discovered LCT pegmatites within the Andover Intrusive
Complex located 35km to the north-east.
Admission and
Total Voting Rights
Application will be made to the London Stock
Exchange for the Subscription Shares to be admitted to trading on
AIM ("Admission"). Assuming
receipt of the proceeds of the Subscription have been received, it
is expected that Admission will become effective and that dealings
in the Placement Shares on AIM will commence at 8.00 a.m. on or
around 3 May 2024.
The Subscription 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 6,491,794,174
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.
Guy Robertson,
Executive Director, commented:
"This farm-out of
the lithium mineral rights to Errawarra provides Alien with the
opportunity to expand its multi commodity portfolio while
continuing to focus on the development of its Hancock Iron Ore, and
Pinderi Hills platinum, nickel, and copper projects.
"Errawarra has
immediate plans to commence exploration for lithium on the
project."
For further information please visit
the Company's website at www.alienmetals.uk
or contact:
Strand Hanson (Financial and
Nominated Adviser)
James Harris / James Dance / Robert
Collins Tel: +44 (0) 207 409 3494
WH Ireland Ltd (Broker)
Harry Ansell / Katy
Mitchell Tel: +44 (0) 207 220 1666
Yellow Jersey (Financial
PR)
Charles Goodwin / Shivantha
Thambirajah / Zara McKinlay Tel: +44 (0) 203 004
9512
Notes to
Editors
Alien Metals Ltd 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 offer significant exploration upside
which is targeted to deliver a mining operation of 2Mtpa for 10
years.
These 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 the 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. The Company also 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).