(Sharecast News) - Minerals exploration and development company Alien Metals said on Thursday that it has been advised by Capstone Mining of the termination of the earn-in agreement between Alien, Estrella de Plata, Capstone Mining and Capstone Gold, effective from 9 July.
The AIM-traded firm initially announced the agreement on 22 October last year.
It said the earn-in agreement related to its Donovan 2 copper-gold project in Mexico.
"Capstone have decided not to proceed with the exploration on Donovan 2 advising that their corporate strategy has shifted and also that they did not receive sufficient confidence from their maiden drilling recently completed on Donovan 2 to continue," said chief executive officer and technical director Bill Brodie Good.
"Capstone advised that their work was not exhaustive and with coincidental work just done a couple of days ago by Alien we are already starting to think about how we may approach further exploration work.
"It has been great working with the Capstone team and we appreciate their input to date which we hope to build and develop on for the future of the project."
At 1528 BST, shares in Alien Metals were down 12.56% at 0.94p.
Alien Metals (UFO)19 Apr 2024 10:57
Alien Metals secures mining lease for Hancock iron ore project
(Alliance News) - Alien Metals Ltd on Friday said it had made a "significant step on the pathway to production" at its Hancock project.