Alien Metals – renegotiated agreement to double Hancock Project landholding and provide right of way to important infrastructure link
The fast tracking of the Mallina acquisition is very positive news for Alien Metals (LON:UFO) broker WH Ireland suggests after the news that the company had renegotiated its agreement to acquire a strategic tenement adjacent to Alien’s Hancock Project.
Late last week Alien Metals announced that it had restructured its September 2022 agreement to acquire the E 47/3752 tenement that adjoins its flagship Hancock Iron Ore Project and provides direct strategic access to the Great Northern Highway.
The planned construction of a haul road on the western tenement will allow the transport of material from the Hancock project to Port Headland, giving the Company complete control over the project's production.
The haul road could also be continued through the main Hancock tenement to allow its use by neighbouring stranded tenements, providing Alien with the strategic opportunity to charge transit fees.
This would provide the company with an additional income stream to that of the Hancock material itself, further improving the project's already excellent economics.
Executive Director Rod McIllree stated that:
"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."
Alien Metals is a mining exploration and development focussed upon delivering a profitable, long-life direct shipping iron ore operation based out of the Pilbara in Western Australia.
In 2019, the Company acquired 51% of the Brockman and Hancock Ranges high-grade iron ore projects and in December 2022 moved to 90% legal and beneficial ownership.
The company also holds silver, copper and base metal projects in various locations around the world however is currently looking at the best way to divest these for the benefit of shareholders.
Analysts Paul Smith and David Seers at WH Ireland consider that the group’s shares have a ‘fair value’ of 2.7p a share against the current market price of just 0.48p.