Alien Metals Ltd (AIM:UFO, OTC:ASLRF) said it took full control of ‘one of Australia's major palladium, platinum, gold and base metals projects’.
The deal values the outstanding 30% of the Munni Munni Project Alien doesn’t already own at a headline A$4.9mln. A total of A$250,000 will be paid in cash and the remainder in shares.
Once the deal goes through it will be the first time the asset has been 100% owned by just one company.
Located in the metal-rich West Pilbara region of Western Australia, Munni Munni is made up of a number of mining leases.
A non-compliant JORC 2004 Resource estimate speaks to its huge potential. It suggested the area was home to 2.2mln ounces of platinum group metals.
Within that number are around 1.14mln ounces of palladium, 830,000 ounces of platinum, 152,000 ounces of gold and 76,000 ounces of rhodium.
Alien said the acquisition will allow it to review and explore 200-square kilometres that is part of a geological area called Munni Munni Complex, which is host to platinum metals and high-grade silver mines.
Chief executive Bill Brodie Good said: "We are very excited to be in a position to become the 100% holder of one of Australia's largest PGE projects.
“The acquisition will consolidate our landholding in this significant region of the Pilbara.
“The ownership of this major PGE deposit, located so close to one of Australia's highest-grade silver deposits, presents Alien with an amazing exploration and development opportunity.
“After many millions of exploration and development dollars were spent on these projects, the deposits in these tenements were essentially side-lined due to historically depressed metal prices. Subsequently, we feel it represents a significant opportunity to Alien shareholders.”