London-listed Alien Metals (UFO ) has raised gross proceeds of around £3.5m which the company says will enable it to deliver its work programme over the next 6-12 months.
The global minerals exploration and development company raised c.£3.5m at 0.85p representing a discount of approximately 21.3% to the closing price on Wednesday.
Specifically, Alien Metals has undertaken the £3.5m placing to progress its corporate and operational strategy, which includes progressing Phase 3 infill and extensional drilling on the Hancock Iron Ore Project and putting plans in place to move the project towards mining.
The funds will also aid ongoing exploration around the Elizabeth Hill Silver project, further exploration drilling in Mexico; early stage exploration on regional tenements including Munni Munni North and resource drilling at the Brockman Iron Ore Project and for working capital.
In recent weeks, an initial independent scoping study for the Hancock Iron Ore Project demonstrated the potential of exceptionally strong returns from a potential development.
In October, Alien announced that it was advancing the Hancock Iron Ore Project by engaging the mining consultancy firm Mining Plus to carry out a scoping study at the project area.
Following the results from the Scoping Study, which Alien described as ‘exceptional’, the Company has begun planning the next stages of development with the appointment of a highly experienced iron ore operations manager to commence the permitting process.
Alien is also in the final stages of planning the next phase of drilling, which is targeting extensions to the Ridges resources, where substantial resource growth potential exists.
Bill Brodie Good, CEO & Technical Director of Alien Metals, commented at the time: “We could not be more pleased with progress on the Hancock Iron Ore Project to date.”
Last month, Alien noted that ongoing drilling at the Elizabeth Hill Silver Project had continued to produce visible sulphides and silver and was providing “excellent geological information.”
In September, Alien said it was “extremely encouraged” by the initial findings of its inaugural drilling program at the Elizabeth Hill Silver Project in the Pilbara Region of Western Australia.
This inaugural program was designed to test some of the historic drilling undertaken over 20 years ago for quality control (QA/QC) purposes, but also to test the Company’s belief that the historical silver ore body forms part of a much larger and widespread mineralised system.
In its recently published results for the six months to 30 June 2021, Alien Metals highlighted a number of recent positive developments, including its recently declared maiden inferred resource in excess of 10Mt @60.4% Fe at the group’s Hancock Iron Ore Project.
The results were ‘significantly’ ahead of expectations with low levels of deleterious elements indicating that the project could produce high-quality Direct Shipping Ore products.
The Company highlighted that ridges E and C at Hancock are only partially tested to date, and that it feels there is ‘considerable’ potential to define further DSO grade material.
‘With only a quarter of the Western Ridges targets tested to date, we believe there is considerable scope to grow the DSO resource over the next 6 months,’ it told investors.
Whilst Capstone Mining Corp decided not to proceed with the farm-in JV in June 2021, the Company said it continues to see potential in the Donovan 2 copper-gold project in Mexico.
Commenting on the interim results, Dan Smith, Chairman of Alien Metals said: “In addition to driving value in our existing portfolio of assets, we continue to be presented with a number of potential acquisition opportunities across a range of commodities and geographies.”
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