The decision follows the completion of the technical due diligence report.
The parties are preparing formal documentation relating to the transaction, with settlement to take place in the coming weeks. T
“Based on a full review of the final due diligence report and geological assessment of the 17 rock chip samples taken in relation to the historical prospects, as well as the fact that both project areas are very underexplored and would appear to have potential for further mineralisation, I am excited to make the decision to exercise the option with Windfield and to start planning for more detailed exploration work for the coming field season in the region,” said Technical Director of Alien Metals Bill Brodie Good.
The projects lie in a district already prolific with significant projects, and which endowed with good infrastructure. The consideration amounts to 200mln UFO shares issued at 0.11p along with 66,666,666 warrants, £100,000 payable in 12 months, as well as further share-based payments based on the achievement of resource targets.
Following the exercise of the option, Alien will be required to maintain the licenses in good standing and sole-fund the first two years of minimum commitments, estimated at A$45,000; thereafter, the parties will fund pro-rata to their respective interests.
Following finalisation of the legal documentation, Alien Metals plans to build on the data procured from the due diligence work as well as compiling in more detail all historic data available both from historical reports and any further open source data to develop a detailed database.
This will then be used to help plan an exploration program to advance both the existing prospects and explore the untested further potential.