The Alien Metals Ltd (LON: UFO) share price spiked 7.58% higher after revealing that it had renegotiated the acquisition of the E 47/3752 tenement that adjoins its flagship Hancock Iron Ore Project from Mallina Exploration Pty Ltd.
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The company will now acquire Mallina Exploration Pty Ltd to acquire the tenements adjacent to its Hancock project, giving it direct strategic access to the Great Northern Highway. The critical terms of the agreement remain essentially unchanged from the original deal.
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However, Alien Metals has negotiated to remove the precedent condition relating to exploration drilling to earn the tenement interest. The condition’s removal now allows the company to focus on sterilisation drilling across the Miscellaneous Licence (E 47/3752) to allow for the construction of an access road.
Since the terms set out in the initial heads of terms agreement didn’t change much, Alien Metals is expected to pay a non-refundable cash amount of A$10,000 to Mallina within seven days of the Execution Date of the agreement, which is today. The cash paid is referred to as the initial payment.
Mallina will then deliver a fully executed company transfer form to Iron Ore Company of Australia Pty Ltd (IOCA), Alien Metals' wholly-owned subsidiary, granting all the shares in Mallina to IOCA. IOCA will then pay A$20,000 in cash to Mallina within fifteen days of being granted a mining license for tenement E 47/3954.
The Tenement Interest’s transfer is via a conditional tenement grant and will require the Department of Mines, Industry Regulation & Safety (DMIRS) approval.
Alien Metals shares fell back as investor interest in the company’s shares dwindled.
Rod McIllree, Alien Metals’ Executive Director, commented: “I am pleased to announce that we have successfully brought forward and concluded the acquisition of the Mallina tenement, consolidating our tenement holding in and around Hancock. Fast-tracking this provides us with a strategic advantage in progressing our project timeline and additionally provides further exploration upside, allowing us to expand the footprint of known targets.”
*This is not investment advice.
Alien Metals share price.
The Alien Metals share price spiked 7.58% higher to trade at 0.5110p, from Thursday’s closing price of 0.4750p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.