24th Oct 2022 12:15
(Alliance News) - Alien Metals Ltd on Monday said its subsidiary, Iron Ore Co of Australia Pty Ltd, is due to start production at the Hancock project next year following a recently-confirmed funding agreement.
Alien Metals is a London-based minerals exploration and development business, whose subsidiary, Iron Ore Co, manages the Hancock tenement in Western Australia. The site is located within 20 kilometres of the Newman township, and borders several other mining licences.
The company said it has received tenders for mining, crushing, screening and transport logistics at Hancock, with preferred party contract selection due in the fourth quarter of 2022. It expects to be granted a mining licence for the site in the first quarter of 2023.
Alien Metals also said that Iron Ore Co has signed an exclusive agreement with Anglo American PLC for a USD15 million funding package, and 100% of off-take for an initial 3 million tonnes from the Hancock Project before production begins in 2023.
The off-take agreement consists of an advanced payment facility of USD10.0 million, and vessel prepayments for up to USD5.0 million for the first 12 months. Anglo American will also receive an agreed royalty for 24 months.
Iron Ore Co Australia has also finalised its heritage agreement with the Karlka Nyiyaparli Aboriginal Corp, the Native Title representative group for the Nyiyaparli People. It is now progressing heritage survey works alongside agreement negotiations, and expects these to be completed in the fourth quarter of 2022.
In other news, the development team continue to engage the Pilbara Ports Authority for access to the public user facility at Port Hedland, Western Australia. The company is confident that it will receive an export allocation at this facility in line with its production profile.
"The company continues to move from strength to strength as evidenced by each of the recent agreements and deals completed for IOCA," said Chair of Alien Metals, Roderick McIllree.
He added: "The longer-term strategy for the company is to deliver on multiple direct shipping ore iron mines in the Pilbara, and we are currently working hard to build the team that will deliver this."
Alien Metals shares were trading 6.4% lower at 0.48 pence each in London on Monday afternoon.
By Holly Beveridge; [email protected]
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