Shares of Alien Metals (LON: UFO) are climbing Wednesday after it told investors it has set up a subsidiary to help expedite the development of the Hancock and Brockman Iron Ore projects.
Alien Metals shares are currently up over 2%, trading around the 0.7p level. However, it is still at lows after a recent fall following the November 4 announcement of a placing to raise approximately £3.5 million.
The new subsidiary, Iron Ore Company of Australia Pty Ltd (IOCA), has already commenced building a Perth-based management team focused on the iron ore projects in Western Australia, said Alien Metals.
Additionally, IOCA has employed an environmental company, Green Values Australia, to begin and complete the necessary paperwork to convert the current exploration licence to a mining lease for the Hancock project.
There have also been discussions with interested parties in Iron Ore for possible offtake agreements, which is an agreement with another entity to purchase all or part of the output of a product — in this case, iron ore.
The company said it is now planning a detailed metallurgical test work programme, while Phase 3 drilling has commenced.
Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “With the third phase of drilling at Hancock started and our Country Manager, Lloyd Edmunds, continuing drive on the permitting and development aspects, we are very pleased with the progress and continue to push Hancock to be ‘shovel ready' as soon as possible.Â
“We remain extremely confident about the prospects for our iron ore projects and look forward to updating the market as we go.”
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