The money will also allow the company to examine strategic opportunities that are being presented to the company in the current market, it added.
Through a placing the company is selling 343.75mln shares priced at 0.08p each. Investors will also receive one share warrant for every new share they buy.
The company plans to use the funds to conduct initial scout drilling at the Los Campos project area and sampling at the San Celso silver project.
It will also complete the Elizabeth Hill acquisition, commission data interpretation from the Donovan 2 copper-gold project and finalise planning for fieldwork for iron ore projects in Australia.
"We believe that with careful budgeting, we can deliver high-impact exploration programs across our existing and proposed licences as soon as safe fieldwork becomes possible both in Mexico and Australia,” Bill Brodie Good, Alien Metals technical director said in a statement.
“This placing will also allow us to actively review strategic opportunities that present themselves during the current environment," he added.