Alien Metals Restarts Fieldwork at Hancock Iron Ore Project
Why we think this is neutral
The company is in the exploration and development stage, with no direct production or revenue-generating activities mentioned in the RNS. While the successful capital raise and the commencement of drilling at the Elizabeth Hill Silver Project are positive developments, the company has not yet demonstrated a clear path to production within the next 12 months. Additionally, the company's previous experience of making and losing millions due to excessive gearing raises some concerns about its risk-taking behavior.
Key Points
- Restart of fieldwork at Hancock Iron Ore Project
- Commencement of diamond drilling at Elizabeth Hill Silver Project
- Successful £1 million capital raise to fund exploration and development activities
- Granting of two new exploration leases adjacent to Hancock Iron Ore Project
- Significant increase in value of company's investment in West Coast Silver Limited
Summary
Alien Metals Ltd (AIM: UFO) has announced the restart of fieldwork at its Hancock Iron Ore Project in Western Australia and the commencement of diamond drilling at its Elizabeth Hill Silver Project. The company has successfully raised £1 million through a placement, which will be used for exploration and development activities at Hancock, general working capital, and to progress studies on the Pinderi Hills tenement package. The company has also been granted two new exploration leases adjacent to the existing Hancock Iron Ore Project, and the exploration team has mobilized to commence a targeted rock chip sampling and assay program to inform an updated Exploration Target. Additionally, the company's joint venture partner, West Coast Silver Limited, has commenced diamond drilling at the Elizabeth Hill Silver Project, and the company's 30.5 million shares in West Coast Silver have increased in value by 42% over the past week.