leadf
logo-loader
viewAlien Metals Ltd

Alien Metals cements farm-out of Donovan 2 with Capstone Mining

Alien said the deal allows for the immediate advancement of the Donovan 2 Copper-Gold project while leaving it free to focus on exploration

Alien Metals Ltd -

Alien Metals Ltd (LON:UFO) has agreed on terms of a farm-out deal with Capstone Mining Corp (TSX:CS) for its Donovan 2 copper-gold project in Mexico.

Capstone started due diligence last month as part of an exclusivity agreement and has now firmed that up into a full earn-out deal that contemplates Capstone spending circa US$10mln to earn up to an 80% interest in the project, after which Alien has the option to contribute on a pro-rata basis.

In the first stage, Capstone will take a 65% stake through a cash payment of US$290,000 to Alien over three years plus US$3.6mln of exploration expenditure.

This stake can rise to 75% through a further cash payment of US$200,000 and funding for a preliminary economic assessment and up to 80% for full funding of the PFS.

Alien said the deal allows for the immediate advancement of the Donovan 2 Copper-Gold project while leaving it free to focus on exploration.  

In a statement, Bill Brodie Good, Alien Metals’ chief executive, commented: “This transaction sees the potential for considerable expenditure to be invested into Donovan 2 over the next few years as the project progresses through to feasibility studies.

"Importantly, the transaction is in line with the Company's model of unlocking value in its project portfolio; with Capstone overseeing exploration at Donovan 2, the Company's management team can focus its exploration efforts at Hamersley and Elizabeth Hill in Western Australia and commence maiden drilling at Los Campos and San Celso.”

Shares in Alien Metals have been on a tear recently, rising over 1,000% since August on hopes for its exploration portfolio.

Quick facts: Alien Metals Ltd

Price: - -

LSE:UFO
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Alien Metals Ltd named herein, including the promotion by the Company of Alien Metals Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

FTSE falls back down to earth after vaccine injected highs

FTSE 100 started the last day of the week on the back foot as positive vaccine news are now archived in the past. London’s leading index dropped 44 points to 6,294 in early trades. Tesco PLC (LON:TSCO) is speeding up environmental goals and plans to reach net-zero carbon emissions by 2035,...

2 weeks, 5 days ago

2 min read