TIDMUFO
RNS Number : 7942G
Alien Metals Limited
19 March 2020
Trading Symbols
AIM: UFO
FWB: I3A1
[19](th) March 2020
Alien Metals Ltd
("Alien Metals" or "the Company")
http://www.rns-pdf.londonstockexchange.com/rns/7942G_1-2020-3-19.pdf
ALIEN METALS COMPLETES ACQUISITION OF 51% WESTERN AUSTRALIA IRON
ORE PROJECTS
ISSUE OF EQUITY AND TVR
Alien Metals (LSE: UFO), the minerals exploration and
development company, is pleased to advise that it has completed a
joint venture agreement ("JVA") with Windfield Metals Pty Ltd
("Windfield"), following its previously notified decision to
exercise its option to acquire a 51% interest in the Hancock Ranges
and Brockman Iron Ore Projects in Pilbara, Western Australia (see
announcement dated 19 November 2019) (together the "Projects").
Projects Overview
The Hancock Ranges and Brockman Iron Ore Projects highlight the
potential for high-grade direct shipping ore ("DSO") based on
independent laboratory analysis of 17 rock chip samples taken from
both tenements, per announcement on 12 November 2019 and a review
of historical data.
Hancock Ranges Iron Ore Project
The Hancock Ranges Iron Ore Project is on-strike to Brockman
Mining's Sirius Deposit which has a JORC inferred and indicated
mineral resource estimate dated December 2014 (Brockman Mining ASX
Announcement 1 December 2014) of 124 million tonnes grading 60.32%
iron ("Fe"). It contains one of four historic drill holes that
returned 126 metres grading 60.28% Fe from surface (Hole
14SERC004), as reported by Volta Mining Ltd ("Volta") in 2014. The
surface results taken from an approximate four kilometre
outcropping on strike mineralised ridge in the north west of the
project area returned assay results of up to 68.7% Fe, again as
reported by Volta in 2013.
Brockman Iron Ore Project
The Brockman Iron Ore Project contains part of the historic BHP
20 deposit, with surface sample grades averaging 62% Fe. The
tenement geology is dominated by the Brockman Iron Formation, which
hosts nearby commercial operations and remains underexplored for
iron mineralisation, despite being held by numerous companies over
a long period of time. The tenement is adjacent to Fortescue Metals
and Rio Tinto tenements.
Assay Results
Since announcing the proposed acquisition in September 2019, the
Company has undertaken a range of desktop and field studies of the
Projects. This included a site visit in November 2019 which
highlighted the high-grade DSO potential of both the Projects. Key
assay results returned from the site visit included:
o Sirius Extension: 64.2% Fe
o Kalgan prospect: 63.9% Fe
o BHP 20 prospect: 60.3% Fe
o BHP 19 prospect: 65.4% Fe
High-grade iron ore (or 60%+ Fe) is highly sought after by steel
mills as it reduces energy cost, increases efficiency and overall,
reduces costs of production.
Technical Director of Alien Metals, Bill Brodie Good, commented
that:
"Following the site visit in November last year, which
highlighted the high-grade nature of the mineralisation at both
projects, the Company is in the process of planning follow-up field
exploration during the winter months in Western Australia to
develop the already identified priority targets.
"These projects are well situated in a prolific iron ore
producing region, with major miners such as BHP, Rio Tinto and
Hancock Prospecting operating adjacent projects with similar
material. The Company looks forward to more detailed exploration
work for the coming field season in the region to prove up the
potential of both projects. "
Figure 1: Location of iron ore Tenements and surrounding major
mines, Western Australia
Corporate JVA
Alien Metals has executed a JVA with Windfield relating to the
previously announced exercise of an option of 51% of the Hancock
Ranges and Brockman Iron Ore Projects. Following Ministerial
approval for the transfer, Alien Metals will be a direct holder of
51% of the Projects.
Pursuant to the JVA, Alien Metals has issued Windfield with
200,000,000 shares at an issue price of 0.11 pence per share (the
"Consideration Shares") and 66,666,666 warrants over shares in the
Company. The warrants have an exercise price of 0.2 pence each and
are exercisable on or before 12 March 2022.
Pursuant to the JVA, Alien Metals assumes the role of manager of
the joint-venture and will oversee future work programs. The JVA
contains other standard clauses around funding and management of
the JVA going forward.
The Consideration Shares will rank pari passu with existing
Ordinary Shares in issue and application will be made to the London
Stock Exchange for the 200,000,000 Shares to be admitted to trading
on AIM. Admission of the Consideration Shares is expected to become
effective at 8:00 am on or around [19] March 2020.
Following Admission, the Company will have 2,018,389,940
Ordinary Shares of no par value in issue. The Company has no shares
in treasury, therefore the figure of 2,018,389,940 should be used
by shareholders for the calculations by which they will determine
if they are required to notify their interest in, or a change of
their interest in, the share capital of the Company under the FCA's
Disclosure and Transparency Rules.
Next Steps
Alien Metals plans to build on the data procured from the Due
Diligence work as well as compiling more detailed existing data
available, both from historical reports and any further open source
data, to develop a detailed database with the aim to help plan an
exploration program on both tenements to advance both the existing
prospects and explore the untested further potential.
Based on positive results both from historic work and the 2019
site visit, the Company intends to drill the priority iron ore
targets in 2020, subject to additional funding being available, as
well as further surface mapping and sampling of other targets
within the two tenements.
For further information please visit the Company's website at
www.alienmetals.uk ,
the C omp a ny 's t wit t er p a g e @AlienMetals, or contact:
Alien Metals Limited First Equity Limited (J oint
Bill Brodie Good, Technical Broker)
Director Jason Robertson
Tel: +44 (0) 20 3907 4257 Tel +44 (0) 20 7374 2212
St James Capital, Company Secretary
Tel: +44 (0) 20 7887 6599
Beaumont Cornish Limited (Nomad) Novum Securities Limited (Joint
James Biddle/ Roland Cornish Broker)
www.beaumontcornish.com Jon Belliss
Tel: +44 (0) 207 628 3396 Tel +44 (0) 20 7399 9425
Turner Pope (Joint Broker)
Blytheweigh (Financial PR) A ndy Thacker/Zoe Alexander
Megan Ray/Rachael Brooks Tel +44 (0) 20 3657 0050
Tel: +44 (0) 207 138 3204
Notes to Editors
Alien Metals Ltd is a mining exploration and development company
listed on AIM of the London Stock Exchange (LSE: UFO). The
Company's focus is on precious and base metal commodities.
Alien Metals has embarked upon an acquisition-led strategy
headed by a high-quality geological team to build a strong
portfolio of diversified assets including two recent acquisitions
in 2019. These include the Brockman and Hancock Ranges potential
high-grade (Direct Shipping Ore) iron ore projects and the
Elizabeth Hill Silver projects both located in the Pilbara region,
Western Australia.
In addition to progressing its acquisition-led strategy and
following its strategic review of its portfolio of silver and
precious metals projects in Mexico, Alien Metals has identified
priority exploration targets within its 12 mining concessions which
it is working to advance systematically. The Company's silver
projects are located in the Zacatecas State, Mexico's largest
silver producing state which produced over 190m oz of silver in
2018 alone accounting for 45% of the total silver production of
Mexico for that year.
Competent Person Declaration
The information in this release that relates to Exploration
Results has been reviewed by Mr Howard Baker, an independent
technical consultant to the Company. Mr Baker is a Chartered
Professional Fellow of the Australasian Institute of Mining and
Metallurgy (Membership Number 224239) and a Competent Person as
defined by the rules of International Reporting Codes that are
aligned with CRIRSCO. Howard Baker has sufficient experience that
is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the 2012 Edition of the
'Australasian Code for Reporting of Exploration targets,
Exploration Results, Mineral Resources and Ore Reserves', also
known as the JORC Code. The JORC code is a national reporting
organisation that is aligned with CRIRSCO. Howard Baker consents to
the inclusion in the announcement of the matters based on his
information in the form and context in which they appear.
Forward-Looking Information
This press release contains certain "forward-looking
information". All statements, other than statements of historical
fact that address activities, events or developments that the
Company believes, expects or anticipates will or may occur in the
future are deemed forward-looking information.
This forward-looking information reflects the current
expectations or beliefs of the Company based on information
currently available to the Company as well as certain assumptions,
including the availability of sufficient funds. Forward-looking
information is subject to a number of significant risks and
uncertainties and other factors that may cause the actual results
of the Company to differ materially from those discussed in the
forward-looking information, and even if such actual results are
realised or substantially realised, there can be no assurance that
they will have the expected consequences to, or effects on the
Company.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Glossary:
g/t - Gram per ton
Oz/t - Ounce per ton
Ag - Silver
Indicated Mineral Resource - The part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a reasonable level of
confidence
Measured Mineral Resource - The part of a Mineral Resource for
which tonnage, densities, shape, physical characteristics, grade
and mineral content can be estimated with a high level of
confidence.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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