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Alien Metals Ltd on Monday said it has completed the acquisition of Pilbara, Western Australia-based Vivash Gorge iron ore project from Perth-based mining exploration firm Zenith Minerals Ltd.
London-based mineral exploration company Alien Metals issued 7.8 million shares to Zenith, about 0.2% of its enlarged issue share capital of 4.76 billion shares. Taking Alien's closing share price of 0.71 pence on Friday, it values the purchase at £55,380.
In addition, Zenith is entitled to a royalty of $1.00 per dry weight tonne ‘of the quantity of shipped ore derived from the area within the boundaries of the licence, as those boundaries exist at completion,’ Alien Metals explained.
Zenith will also receive performance shares based on some unspecified milestones.
A previous iron ore mineral resource conducted by Fortescue Mining Group estimated 28 million tonnes at 59% iron over neighbouring ground to the site.
‘Given the adjacent direct shipping ore grade deposits defined by iron ore major Fortescue Metals Group, coupled with what we believe to be the tenement's highly prospective yet untested geology, Vivash Gorge provides Alien with a third strategically located high grade iron ore project within the Pilbara region,’ Chief Executive Officer & Technical Director Bill Brodie Good said in late May.
Alien Metals shares were 4.8% lower at 0.71 pence each in London on Monday morning.
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