Alien has announced that it has entered a conditional share sale agreement (‘SSA’) to increase its interest in the Hamersley Iron Direct Shipping Ore (‘DSO’) project (‘the Project’) from 51% to just over 90%.
Backed by recent strong results from its maiden drilling program on the Hancock Iron Ore project (‘Hancock’), and with iron ore prices having recently touched record highs, tracking Chinese steel output which is now a full 16% higher than this time last year, the rationale for this move is clear. In obtaining the major controlling interest, the Board will secure much greater flexibility to both manage and monetise the Project as continuing exploration takes it further up the value curve at a time when governments worldwide are committing significant new funding to major, longer-term infrastructural projects in an effort to kick-starting their post-Pandemic economies. With the transaction being funded primarily through equity and warrants, Alien’s fund raise of 23 November 2020, left it well capitalised with around £4.3m (US$5.8m) committed for its planned 2021 program of works, some of which has already been allocated for a follow-up program on Hancock that is expected to commence shortly.
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