Alien Metals Ltd (LON: UFO) is raising £1.5m via a placing and subscription at 0.5p a share. The cash will help to fund the development of the minerals explorer’s drilling and geological programmes. There are also plans to progress a resource review at Munni Munni platinum group element project in Australia. Prior to the announcement of the fundraising the share price ended the day at 0.65p.
Earlier this week, Alien Metals subsidiary Iron Ore Company of Australia has entered into binding heads of agreement to acquire a tenement near the company’s Hancock project. Alien Metals is negotiating a deal with Anglo American, which will provide up to $15m in funding and take 100% of iron ore production from Hancock.
There is also a revised option agreement with Windfield Metals that would give Alien Metals an indirect 90% interest in the Hancock project, as well as the Brockman DSO iron ore project. Alien Metals hopes to get Hancock in production in the first half of next year.
New executive chairman Roderick McIllree will acquire 50 million shares. He has also had 230 million shares issued to him under the terms of the EMI share option plan. They can be exercised at prices between 0.8p a share to 1.4p a share. Chief executive Bill Brodie Good will buy two million shares.