LONDON, UK: Alien Metals Ltd, a global minerals exploration and development Company, has given notice to exercise its option to acquire an additional 39% interest in the Hancock and Brockman direct shipping iron ore projects from Windfield Metals Pty Ltd.
Once concluded the Company’s direct ownership of the licences will therefore move to 90%.
Roderick McIllree, Chairman of Alien Metals, commented: “Now that Hancock is moving into a production footing it’s important to secure our full ownership rights. Obtaining finance from our partners also requires certainty at the licence level and I am delighted to have filed the notice to finalise our move to 90% ownership.
“The Company and the IOCA team are now fully committed to getting the Hancock Iron Ore Project into production in 2023.
“We look forward to keeping shareholders updated on our Iron Ore Projects and the rest of the portfolio.”
Completion of the acquisition of the 39% interest is subject to the satisfaction of certain conditions which the Company aims to conclude by the end of this year. On satisfaction of these conditions, Alien will acquire a further 39% interest in the Projects from Windfield through the payment of the following consideration:
- £60,000 in cash;
- 260,000,000 UFO shares at the closing mid mark price on the day of Completion; and
- 100,000,000 share purchase warrants, exercisable at 1 penny each before 31 December 2025 (together the “Upfront Consideration”).
As part of the transaction Alien Metals has agreed to transfer its interest in the Projects to IOCA who will become the manager of the Projects.