23rd May 2025 13:42
(Alliance News) - Alien Metals Ltd on Friday said its joint venture partner West Coast Silver Ltd has commenced mobilisation for its maiden diamond drilling campaign at the Elizabeth Hill silver project.
Previously, on Thursday, Alien announced a placing it expected to raise GBP1.0 million.
The stock was down 4.0% at 0.084 pence in London on Friday afternoon.
The Australia-focused minerals explorer and developer said the mobilisation of drilling contractor West Core Drilling Pty Ltd is scheduled for the weekend.
Alien Metals expects drilling operations at Elizabeth Hill, in Western Australia's Pilbara region, "to commence shortly thereafter, targeting extensions to known high-grade silver mineralisation".
"The upcoming drilling campaign will test both extensional and down-plunge targets associated with the known high-grade silver mineralisation at Elizabeth Hill," Alien said. "In addition to targeting potential mineralised extensions, the programme aims to enhance geological understanding of the structural framework that hosts the Elizabeth Hill mineralised envelope."
"Commencement of drilling at Elizabeth Hill marks another major step forward for the joint venture," said Executive Chair Guy Robertson. "With our partners at West Coast Silver now on the ground and mobilising to drill, we look forward to results from what is one of Australia's highest-grade historic silver mines.
"This work aligns with our strategy to progress the Elizabeth Hill and Pinderi Hills projects with minimal dilution to Alien shareholders while retaining exposure to significant upside."
Also, on Thursday the company announced a placing of 1.25 billion new common shares at 0.08p each, to raise gross proceeds of GBP1.0 million.
Alien said the placing price represents an approximate 15.79% discount to its 0.095p per share mid-market closing price on Wednesday.
Furthermore, Alien said it would issue 416.7 million warrants, one for every three new fundraising shares, to the placing subscribers. The holder would be entitled to subscribe for one more common share for each warrant, at an exercise price of 0.12p. This represents a 50% premium to the placing price.
Robertson explained: "Proceeds from the Fundraise will be directed primarily toward advancing the Hancock Iron Ore Project, where we've recently secured two new exploration leases...We are also encouraged by signs of a recovery in iron ore markets and the growing appetite on the ASX for high-quality iron ore assets."
By Emma Curzon, Alliance News reporter
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