Alien Metals Ltd (LON:UFO) said Capstone Mining Corp terminated an earn-in agreement relating to the Donovan 2 copper-gold project in Mexico.
"Capstone have decided not to proceed with the exploration on Donovan 2 advising that their corporate strategy has shifted and also that they did not receive sufficient confidence from their maiden drilling recently completed on Donovan 2 to continue,” said Bill Brodie Good, chief executive of Alien Metals.
“Capstone advised that their work was not exhaustive and with coincidental work just done a couple of days ago by Alien we are already starting to think about how we may approach further exploration work,” he added.
Capstone will provide Alien with all the technical data generated as well as a final report outlining their findings. Alien said it will review this information alongside its own technical views before making a decision on the way forward.
As a result of the termination, Alien will revert back to being the project operator and retain a 100% interest.
Capstone and Alien signed the earn-in agreement in October 2020.