Alien Metals Shares Rise After Completing Deal To Acquire 39% Interest In Hancock and Brockman Project

Alien Metals (LON: UFO) shares rose in early Tuesday trading after the company said it had completed the transaction to acquire an additional 39% interest in the Hancock and Brockman projects.

Alien is now the legal and beneficial owner of a 90% direct interest in the licences associated with the projects after closing the deal after it exercised its option with Windfield Metals Pty Limited in November.

“As we continue working towards production at Hancock in 2023 moving to 90% is a logical next step in the project evolution and cements our position in the Pilbara as an emerging potential producer of high grade-high purity, direct shipping, iron ore,” commented Rod McIllree, Executive Chairman of Alien Metals.

He continued: “Alien, together with its 100% owned subsidiary IOCA, remain focused on our 2023 production goal. We would like to thank Windfield for the seamless transaction and welcome them as a long-term shareholder as we continue to build what I believe will be one of Australia's next DSO iron mining operations and add value for all stakeholders including the Karlka Nyiyaparli Aboriginal traditional owners. We look forward to sharing more exciting updates as the project advances through permitting and on to the start of mining.”

In order to complete the deal, Alien had to make a £60,000 payment in cash, issue 260 million Alien common shares and 100 million share purchase warrants, exercisable at 1p on or before December 31, 2025.

In addition, as part of the agreement, Alien will transfer its interest in the projects to its 100% owned Australian subsidiary Iron Ore Company, which will become the 90% owner and manager.

Alien Metals shares are currently up over 5% at 0.4595p per share. However, the stock has declined more than 32% this year.