Alien Metals secures AUD 2m short-term funding

15th Mar 2024 13:28

(Sharecast News) - Alien Metals announced a short-term funding facility worth up to AUD 2m (£1.03m) via a convertible loan note on Friday.

The AIM-traded firm said the funding injection aimed to address immediate capital needs, while fueling ongoing exploration efforts across the company's diversified resource portfolio.

It said the funds would also support strategic initiatives geared towards enhancing shareholder value.

The board said the facility would play a crucial role in financing exploration activities and facilitating the review of long-term funding options for key projects, notably the Hancock iron ore Project and the Pinderi Hills project in Western Australia.

Alien Metals said it was actively engaged in discussions with strategic partners to explore various financing avenues, including offtake funding, debt, and equity project funding.

Additionally, it said it was exploring the potential sale or joint venture of non-core assets to bolster its financial position.

In a strategic move, Rob Mosig, a seasoned expert in exploration, development, and strategic partnering, had been appointed as a non-executive director to the board.

With direct experience in the company's PGM and base metals project in the West Pilbara, Aliens aid Mosig's expertise was expected to provide valuable insights.

Meanwhile, Alwyn Vorster had stepped down from the board to focus on other commitments, but would remain an advisor to Alien Metals on the Hancock Project's development.

Looking ahead, Alien Metals said it planned to establish an advisory board comprising technical and mining industry experts.

The advisory board would provide guidance on the strategic options available for financing and developing the company's key assets.

It said its focus remained on advancing exploration efforts at the Hancock Project to expand resources and reserves, as demonstrated in the development study released on 8 February, which highlighted robust economic returns from the project.

"It is our objective to unlock the value of the Hancock iron ore project, where we have recently received positive interest from potential joint venture partners following the results of the development study," said executive director Guy Robertson.

"The funding announced today will provide additional capital to the company to continue the exploration of our projects, while we explore and progress negotiations with various potential funding partners for the Hancock Project."

Robertson said the company was "delighted" to welcome Rob Mosig to the board, noting his over-40 years of experience in mineral exploration projects, including direct experience with Alien's Pilbara PGM and battery metals projects.

"The board thanks Alwyn Vorster for his contribution and ongoing support as a senior adviser, assisting the company's strategic options in the iron ore portfolio."

At 1427 GMT, shares in Alien Metals were down 14.62% at 0.12p.

Reporting by Josh White for Sharecast.com.