(Alliance News) - Alien Metals Ltd on Wednesday announced an agreement to buy the historically producing Elizabeth Hill silver mine.
Elizabeth Hill is located in the Pilbara region on Western Australia, some 45 kilometres from the town of Karratha. It was mined underground between 1998 and 2000, generating over 1 million ounces of silver.
The mine is being purchased from Karratha Metals Group Ltd, though it is subject due due diligence, regulatory approval and the approval of Karratha shareholders. Alien will pay by issuing 200 million company shares alongside 50 million warrants.
The consideration shares will be deemed to have been issued at 0.14 pence each, with each warrant exercisable within 18 months at 0.25p. Alien shares were 1.1% lower Wednesday in London at 0.18p.
This issue price suggest an acquisition price of GBP280,000 for the mine.
Alien already has a number of copper, silver, and lithium exploration projects in Mexico and Bolivia.
"The Elizabeth Hill silver project is a great addition to our silver assets in Mexico and it is also complementary to the Hancock Ranges and Brockman iron ore projects located in the Pilbara region of Western Australia," said Alien's Technical Director Bill Brodie Good.
"The historical information on the property viewed to date gives us excellent indication this project has significant upside potential, especially as silver prices are now nearly four times the average price when production ceased in 2002. Of note, some of the largest silver 'nugget' specimens in Australia have been pulled from Elizabeth Hill."
By George Collard; georgecollard@alliancenews.com
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