Alien Metals Ltd (LON: UFO) have seen their shares dip despite the firm confirming the purchase of the Elizabeth Hill silver mining.
Alien Metals Ltd is a company led by experienced professionals committed to creating a multi-commodity portfolio of mining projects in jurisdictions with established mining communities, stable political background, where strong operational controls can be assured.
The Company is an experienced explorer, mine developer and operator. Alien’s existing portfolio of exploration stage assets include volcanogenic massive sulphide (VMS) style mineralisation (copper, zinc and lead) and silver projects in Mexico.
Alien Metals seem to have had a period of positive trading, and the icing on the cake has been placed with todays update.
With the losses made by FTSE100 listed Fresnillo who told shareholders about their modest production estimates for 2019, the Elizabeth Hill mine has a historic record of producing results, which may spark shareholder appetite in the long term.
In September, the firm saw its shares surge 80% as it identified further precious metal mineralization at its three projects in Mexico. Today, the firm updated shareholders that it had agreed to buy the historically prodding Elizabeth Hill silver mine.
Elizabeth Hill is located in the Pilbara region on Western Australia, some 45 kilometres from the town of Karratha. It was mined underground between 1998 and 2000, generating over 1 million ounces of silver.
The mine is being purchased from Karratha Metals Group Ltd, though it is subject due due diligence, regulatory approval and the approval of Karratha shareholders. Alien will pay by issuing 200 million company shares alongside 50 million warrants, which may cause shares to be volatile.
The consideration shares will be issued at 0.14 pence each, with each warrant exercisable within 18 months at 0.25p, which has been reflected in this mornings stock price movement.
This issue price suggest an acquisition price of £280,000 for the mine. Shares of Alien Metals dipped 1.11% to 0.18p following the announcement. 4/12/19 12:44BST.
Alien already has a number of copper, silver, and lithium exploration projects in Mexico and Bolivia.
“The Elizabeth Hill silver project is a great addition to our silver assets in Mexico and it is also complementary to the Hancock Ranges and Brockman iron ore projects located in the Pilbara region of Western Australia,” said Alien’s Technical Director Bill Brodie Good.
“The historical information on the property viewed to date gives us excellent indication this project has significant upside potential, especially as silver prices are now nearly four times the average price when production ceased in 2002. Of note, some of the largest silver ‘nugget’ specimens in Australia have been pulled from Elizabeth Hill.”
Rival firms who mine in Australia have seen impressive updates which will please shareholders, especially in the precious metals scene.Yesterday, Rockfire Resources saw their shares surge after they made a new discovery in their Australian operations on its Plateau gold project.
Additionally, rival Panther Metals had announced it had agreed its first exploration licence in the Northern Territory, Australia at the end of October which means that the acquisition has come at a good time for Alien Metals.