Alien Metals (AIM:UFO) has raised £2.5 million at 1.1p per share in order to boost its cash balance and to extend and accelerate a range of exploration activities across its portfolio.
The oversubscribed placing, which was undertaken at a 100% premium to UFO’s most recent fundraise, also includes several new and existing Professional and Institutional investors.
Based on current budgets and in the absence of exceptional circumstances, the Company said it believes that its existing work programs are now fully funded through to end-2021.
The £2.5m proceeds will be utilised for ‘high-impact exploration’ at the Los Campos and San Celso Silver Projects in Mexico and the Elizabeth Hill High-Grade Silver project in Australia.
This will fund maiden drill programs and potentially follow up in-fill programs at both the San Celso and Los Campos silver projects to start developing initial resources for both projects.
Metallurgical testing will also be factored in as well as for San Celso, continuing to add strategic ground contiguous to the project to enhance its potential and ground holding.
An initial scoping study is also envisaged for either or both of San Celso and Los Campos, dependent on positive drill results. Alien will also continue to review other project opportunities that may fit with its strategy and experience in Mexico and surrounding jurisdictions.
Following the finalisation of the digitisation of historical data, the proceeds will be used to update resource modelling and undertake a comprehensive trenching and sampling program at the Elizabeth Hill Silver project with possibility of some initial drilling to follow.
Further, the Company said it is planning to undertake more detailed exploration across the conditionally acquired Exploration Licence ELA 47/4422, which surrounds Elizabeth Hill.
UFO plans to follow-up on five priority prospects at the Hamersley Iron Ore Projects that were identified for next stage exploration. Subject to final lab results, this will entail some in-fill surface sampling and mapping and maiden drilling programs on priority prospects.
For the Brockman Project, three targets focus on the historic high-grade BHP prospect numbers BHP15, BHP19 and BHP20, with Prospect BHP15 still to be mapped and sampled.
UFO noted that prospects 19 and 20 are awaiting their final interpretation of recent fieldwork which ‘will hopefully lead to detailed planning of a maiden drilling program.’
Two key targets in the Hancock Ranges Project are the Sirius Extension prospect, that has previously been drilled by Volta Mining. Meanwhile, the Kalgan Prospect is in the north-north-west of the project which the Company believes has ‘excellent potential.’
UFO said part of this new funding is now planned to be used for some initial scout drilling on the highest priority targets following the planned field mapping and sampling work.
Bill Brodie Good, CEO & Technical Director of UFO said the proceeds will enable the group to fast-track activities across all projects and advance them with larger exploration budgets.
He commented, “With the continued strength of silver, iron ore and gold prices, we are excited that with these additional funds we can really fast-track on our projects.”
He added, “We are eager to undertake a follow-up work program at the Hamersley Iron Ore projects in the Pilbara region of Western Australia with some maiden drilling; we now have the scope to test additional priority prospects in more detail to materially advance them.
“We continue to push for the award of drill permits in Mexico to pursue our maiden drilling programs on both San Celso and Los Campos Silver projects, which will now be subject to larger programs to further define the potential of the projects.”
Shares in Alien Metals have more than doubled since the beginning of October to trade approximately 30% above the placing pricethis morning at 1.4p following the announcement.
Reasons to Follow Alien Metals
Multi-Mineral Portfolio
UFO’s portfolio of exploration stage assets include volcanogenic massive sulphide style mineralisation (copper, zinc and lead), high-grade silver projects in Mexico and a 51% interest in two highly prospective iron ore projects in the Pilbara region in Australia.
The company said its portfolio may be expanded to include other minerals such as iron ore and lithium, and jurisdictions within Africa and Asia where its management has demonstrable expertise advancing assets in line with international reporting standards.
Expanding License Areas
In recent weeks, the company was granted a 208 km2 exploration licence by Ironbark Zinc surrounding the Citronen zinc-lead project, a high-grade metal project located in northern Greenland which is believed to be one of the world's largest undeveloped zinc-lead projects.
The minerals exploration and development company said the project holds a JORC resource of 131.1m tonnes @ 4.5% zinc and lead for 13bn pounds of contained zinc and lead metal.
The licence is valid until 31 December 2023 and continues UFO’s strategy of identifying counter-cyclical opportunities in first class mining jurisdictions with ‘excellent upside potential.’
Location of Ironbark Zinc Ltd Citronen zinc-lead deposit and permit area, Greenland
"The Company and its advisers continue to assess new projects and identified an opportunity to secure an exploration footprint in northern Greenland on strike and adjacent to the world class undeveloped Citronen zinc-lead project,” said CEO, Bill Brodie Good.
IBK believes the projects offer an attractive entry into one of the world's premier silver belts and will soon start marketing them to a range of potential investors and project partners.
UFO said it will continue its efforts in exploring and developing the projects and simultaneously consider third party funding options to develop and mine the projects.
In other recent news, the company has also recently completed a detailed geological mapping and sampling programme at the Hamersley iron ore projects in Australia with field observations indicating that two of its prospects may be part of the same larger system.
The two projects, which have demonstrated “great potential” are located in the Hamersley Province which is known as one of the premier iron ore producing regions of the world.
Preliminary handheld XRF results are consistent with those observed in the 2019 field programme, with reported ranges of between 40% and 70% iron.
Alien Metals has now commenced preparing a Program of Works ("POW") for submission ahead of drilling.
Meanwhile, North American advisor firm IBK Capital has commenced the marketing process for the Company's San Celso and Los Campos silver projects which are located in Mexico.
The process for the silver projects follows the successful earn-in transaction with Capstone Mining announced earlier in October 2020 regarding UFO’s Donovan 2 copper-gold project.
Location of Ironbark Zinc Ltd Citronen zinc-lead deposit and permit area, Greenland.
Complementary Acquisitions
Alien Metals has executed 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 high-grade iron ore projects and the Elizabeth Hill Silver projects both located in the Pilbara region, Western Australia.
In addition to progressing its portfolio of assets 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 9 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.
Follow News & Updates from Alien Metals here: