Alien Metals Ltd (LSE AIM: UFO), a minerals exploration and development company, is pleased to advise that it has entered into a Binding Heads of Agreement with ASX listed Artemis Resources Limited (ASX: ARV) ('ARV') to, subject to the satisfaction of certain conditions, acquire its 70% joint venture interest in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia.
The Agreement will mean that, on completion, Alien will move to 100% ownership of one of Australia's major palladium, platinum, gold and base metals projects after agreeing to acquire 30% interest from minority joint venture partner, Platina Resources Ltd.
Highlights: On completion, Alien Metals will own 100% of the project, which will allow Alien to develop a systematic exploration and development programme, the first time a single company has owned the project for over a decade.
The Munni Munni Project consists of several mining leases and sits adjacent to the Company's highly prospective Elizabeth Hill Project which already hosts potential for further significant silver, copper, nickel and PGE mineralisation.
The strategic acquisition will allow the Company to review and explore an area of 200 km2 in the Munni Munni Complex which hosts a major PGE and high-grade silver mine.
The Munni Munni Project hosts the largest ultramafic intrusion in the West Pilbara and is one of the biggest undeveloped primary Platinum Group Elements ('PGE') Resources in Australia: o The historic non-compliant JORC 2004 Resource estimate implied 24Mt @ 2.9g/t Platinum Group Element (PGE) and gold for 2.2Moz PGM3 o Around 95% of this resource estimate was in the Measured and Indicated categories o The resource hosts 1.14Moz palladium, 0.83Moz platinum, 152Koz gold and 76Koz rhodium
The proposed deal includes a cash outlay of A$250,000 and A$4.65 million payable in shares.
Alien remains in a strong position to expedite exploration in Australia post the completion of a GBP$4m (A$7.5m) capital raise completed in November 2021.
Bill Brodie Good, Chief Executive Officer & Technical Director of Alien Metals, commented: 'We are very excited to be in a position to become the 100% holder of one of Australia's largest PGE projects. The acquisition will consolidate our landholding in this significant region of the Pilbara.
The ownership of this major PGE deposit, located so close to one of Australia's highest-grade silver deposits, presents Alien with an amazing exploration and development opportunity. After many millions of exploration and development dollars were spent on these projects, the deposits in these tenements were essentially side-lined due to historically depressed metal prices. Subsequently, we feel it represents a significant opportunity to Alien shareholders. 'With the growth of new and vital technologies, cleaner vehicles globally that will need more platinum, palladium, silver, copper, nickel and associated metals in an ever-growing market, we feel this is a fantastic opportunity for the Company and are really excited to get started.'
Transaction Terms
Alien Metals has entered into a Binding Term Sheet with Artemis Resources Limited to acquire an effective 70% interest in four mining licences and an exploration licence, covering a total of 75.9km2, located in the West Pilbara region of Western Australia, known as the Munni Munni Platinum Group Metals and Gold Project ('Munni Munni Project').
On completion, Alien will hold an interest of 100% in the Munni Munni Project should Alien complete the transaction with Platina Resources for the remaining 30% as announced on the 24 November 2021. Completion is subject to a number of conditions precedent including completion of technical, financial and legal due diligence by Alien on the Assets within 21 days of the date of execution of the Agreement, and also obtaining necessary regulatory approvals and obtaining all necessary third-party consents and approvals to give effect to the proposed acquisition. A significant amount of work has already taken place between the Parties and it is expected that the conditions precedent will be completed in a timely manner. The Project is generally considered to be one of Australia's largest PGE deposits with in excess of A$20m spent on the Project with various feasibility studies undertaken in the last 20-plus years.
The Project is considered to be an advanced exploration project which, further to a more detailed review to identify required in-fill and extension exploration and resource work, could lead to the development of a more robust resource and feasibility study factoring in commodity prices and other items. The Project is palladium dominant, with almost 60% of the resource reportedly being palladium.
Having been the subject of several joint ventures, and also more recent legal action which was resolved in 2020, Alien has been able to secure an agreement to control 100% of the project. To be able to drive it forward under single ownership is a first in over 20 years. With the growing knowledge and potential of the region, the Company is excited to have this opportunity.
Further updates will be provided in due course as appropriate. In the year to June 2021, ARV spent A$589,602 on the Munni Munni Project (nil revenue) and it was valued in the Balance Sheet of ARV at A$2.4m. Should the Transaction complete, Alien expects to issue approximately 367m Ordinary Shares as part of the consideration, while the cash element of the consideration will be funded from existing cash resources. Dan Smith is a director of ARV and was therefore recused from the Board's deliberations on the Transaction
Contact:
Tel: +44 20 7796 8644
ALIEN METALS LIMITED 