(Alliance News) - Alien Metals Ltd said Tuesday it is exploring additional acquisition opportunities, as it makes progress on technical due diligence on the Hancock Ranges and Brockman iron ore projects in Pilbara, Western Australia.
Shares in the mineral exploration company - which is headquartered in London - were 10% lower at 0.14 pence on Tuesday.
Alien said its technical consultants have carried out a detailed review of the historical information related to the licences to identify several prospective areas, that have been visited and inspected.
Samples have been taken from these areas, to be assayed by an independent laboratory.
In mid-September, Alien Metals signed a binding option agreement with Australian miner Windfield Metals Pty Ltd to give Alien a 51% interest each in the Hancock Ranges and Brockman projects.
Under the agreement, Alien Metals would first pay an AUD25,000, or GBP13,552 non-refundable option fee, granting the company a 45-day exclusive option over the licences.
Following due diligence and exercising the option, Alien will then issue 200.0 million Alien Metals shares at 0.11p per share, 66.7 million warrants exercisable to the 80% premium to the issue price.
Alien Metals will pay a further GBP100,000 12 months after the completed acquisition, and issue 100.0 million shares at the same 0.11p each based on performance milestones.
Looking ahead, Alien Metals said it is considering additional acquisitions in the precious metal space, that would be "complementary" to the company's existing Mexican asset portfolio.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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