RNS Summary24 Mar 2025 14:08
the announcement describes a transaction between errawarra and alien metals, where errawarra will acquire a 70% interest in the elizabeth hill and pinderi hill assets in exchange for consideration worth a$1.7 million. the key points of the transaction are:
1. acquisition of assets: errawarra will acquire a 70% interest in the elizabeth hill and pinderi hill assets through its wholly-owned subsidiary, crest silver pty ltd.
2. joint venture agreements: alien metals and errawarra will enter into joint venture agreements to facilitate the exploration of the elizabeth hill and pinderi hill assets.
3. project joint venture: a project joint venture (jv) will be formed, with alien holding a 30% interest and errawarra holding 70% and acting as manager.
4. capital raising: errawarra has received firm commitments for a capital raising of a$3 million from institutional and sophisticated investors at a placement price of a$0.027.
5. consideration: the consideration for the transaction includes a cash payment of a$500,000 and the issue of 44.5 million errawarra shares to alien metals, valued at a$1.2 million.
6. shareholding: alien metals will retain a 12.1% shareholding in errawarra after selling down 14 million shares in the placement.
7. funding: the cash consideration received by alien metals will be applied to the further development of the han**** iron ore project and pinderi hills platinum group metals project.
8. technical team: alien metals will benefit from access to a perth-based technical team, expediting planned fieldwork exploration works and drilling.
the transaction is subject to errawarra completing due diligence, raising capital, and receiving shareholder approvals for the issue of consideration shares. the deal is expected to strengthen alien metals' relationship with an asx-listed company, providing access to potential sources of funding to advance silver exploration and development at elizabeth hill and pinderi hills.
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