Share Talk caught up with Bill from Alien Metals Ltd (AIM: UFO) today to get his take on the recent company announcement with the Revised agreement for Alien to acquire 90% of the Hamersley Iron Ore Project.
Alien currently has a 51% direct interest in the Projects, with the remaining 49% held by Windfield. The parties have been in ongoing discussions regarding Alien increasing its interest in the Projects.
Pursuant to the Option Agreement with Windfield, Alien can acquire an additional 39% interest in the Projects from Windfield, thereby increasing Alien’s direct holding to 90% (“Option”). To exercise the Option, Alien will pay total consideration of £1,794,104, which consists of a cash payment of £60,000 and the issue of 260,000,000 ordinary shares at a deemed issue price of £0.0067 pence per share (being the 20-day volume average weighted price of Alien shares on the day that is 20 business days immediately prior to the execution of the Option Agreement) and the issue of 100,000,000 share warrants exercisable at 1 pence each. Alien has an 18-month period to exercise the Option, although the Company intends to action earlier. Such exercise is conditional on Alien receiving approval to issue the consideration shares and the parties entering into a deed of assignment and assumption in relation to the Hancock project native title Heritage Agreement.
Dan Smith, Non-Executive Chairman of Alien Metals, commented: “The execution of the revised binding option agreement with Windfield is a key milestone in the development of both the Hancock and Brockman iron ore projects, as we can now drive both forward knowing the Company has de-risked the projects with the ability to move to a 90% project interest.
“The Iron Ore Company of Australia (“IOCA”) team is fully focussed on getting the Hancock project into production in the first half of 2023, while exploration work on the highly prospective Brockman and Vivash projects remains ongoing.
“The Company looks forward to updating investors on the development of Hancock in coming weeks”.