(Alliance News) - Alien Metals Ltd is to take a 51% stake in two iron ore projects in Australia after finishing due diligence, it said on Tuesday.
Alien will take 51% of the Hancock Ranges and Brockman projects, having earlier in November said due diligence had indicated the tenements were "very underexplored" with the potential for new high-grade iron ore finds.
Alien will issue 200 million shares to Windfield Pty Ltd at 0.11 pence each to take the 51% holding, as well as issue 66.7 million warrants exercisable at an 80% premium to 0.11p.
It will also pay GBP100,000 in cash 12 months following completion, then issue 100 million performance shares in two tranches at 0.11p should the projects pass two milestones: a 10 million tonne resource at greater than 54% iron and a 20 million tonne resource at the same grade.
Alien shares were 12% lower on Tuesday afternoon in London at a price of 0.17p each.
"Based on a full review of the final due diligence report and geological assessment of the 17 rock chip samples taken in relation to the historical prospects as well as the fact both project areas are very underexplored and would appear to have potential for further mineralisation, I am excited to make the decision to exercise the option with Windfield and to start planning for more detailed exploration work for the coming field season in the region," said Alien Technical Director Bill Brodie Good.
By George Collard; georgecollard@alliancenews.com
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Alien Metals (UFO)