Alien Metals to raise gross proceeds of up to £2 million

Alien Metals Ltd (LON:UFO), a global minerals exploration and development company, has announced its intention to raise gross proceeds of up to £2 million by means of a placing of new Common Shares to certain institutional and other investors at a price of 0.2 pence per share.

The Placing Price represents a discount of approximately 16 per cent. to the Closing Price 0.28 pence per Common Share on 8 August 2023, being the latest practicable business day prior to the publication of this Announcement.

The Placing is to be conducted by way of an accelerated bookbuild process which will commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix II to this Announcement.

A further announcement confirming the closing of the Bookbuild and the number of Placing Shares is to be issued pursuant to the Placing is expected to be made in due course.

Capitalised terms used but not otherwise defined in this Announcement shall have the meanings ascribed to such terms in Appendix I of this Announcement, unless the context requires otherwise.

Trading Update

The Company is pleased to provide the following trading update.

·    Tenders for the material construction and operational packages continue to be reviewed and optimised. It is anticipated that Alien Metals will select preferred tenderers in the coming weeks,

·    The Company continues to negotiate offtake agreements for the company’s Hancock project with interested parties, (including Anglo American as already announced) with indicative term sheets also received from other parties,

·    Assays of the recent resource definition drilling for the Sirius mining pit continue to progress through the laboratory, results will be announced when received,

·    The Company continues to progress Heritage Partnership Agreements across its Iron Ore projects at Hancock, Vivash Gorge and Pinderi Hills (incorporating Elizabeth Hill and Munni Munni),

·    The Company has progressed a review of the Pinderi Hills area and will shortly be in a position to provide an update on this review, which includes analysis of historical, unreleased results.

Placing Highlights

·     The Company intends to raise up to £2 million before expenses through the Placing arranged by WH Ireland Limited by way of the issue of up to 1,000,000,000 new Common Shares at the Placing Price.

·     Placing to be conducted via an accelerated bookbuild process launching today.

·     The Placing Shares, assuming full take-up of the Placing will represent approximately 16 per cent. of the Enlarged Issued Share Capital.

·     Alwyn Vorster (Non-Executive Chairman) and Troy Whittaker (CEO) have indicated they intend to participate in the placing.

·     The net proceeds of the Fundraise will be used:

·    To fund UK and Australian salaries, overheads, corporate activities and working capital, until early 2024

·    To fund exploration activities particularly around Native title negotiations and field heritage surveys at Hancock

·    To fund exploration activities at Pinderi Hills, an area which includes Elizabeth Hill and Munni Munni

The Placing

The Company intends to issue up to 1,000,000,000 Placing Shares, to raise gross proceeds of up to £2 million, to participants in the Placing. The Placing Shares are expected to be admitted to trading on AIM on or around 17 August 2023.

WH Ireland Limited, is acting as bookrunner in connection with the Placing. The Placing Shares are being offered by way of an accelerated bookbuild, which will be launched immediately following this Announcement in accordance with the terms and conditions set out in Appendix II to this Announcement.

Admission of the Placing Shares is conditional, inter alia, upon the placing agreement dated 9 August 2023 between the Company and the Bookrunner not having been terminated and becoming unconditional in respect of such shares.

The Placing is conditional upon, amongst other things:

•      Admission of the Placing Shares becoming effective by no later than 8.00 a.m. on 17 August 2023 (or such later time and / or date as the Company and the Bookrunner shall agree, not being later than 31 August 2023);

•      the delivery by the Company to the Bookrunner of certain documents required under the Placing Agreement;

•      Alien Metals having fully performed its obligations under the Placing Agreement to the extent that such obligations fall to be performed prior to Admission of the Placing Shares; and

•      the Placing Agreement not having been terminated by the Bookrunner in accordance with its terms.

The timing of the closure of the Bookbuild and the allocation of the Placing Shares to be issued at the Placing Price are to be determined at the discretion of the Company and the Bookrunner.

Admission to trading

Application will be made to the London Stock Exchange for Admission of the Placing Shares to trading on AIM. It is expected that Admission will become effective and dealings in the Placing Shares will commence at 8.00 a.m. on or around 17 August 2023.

A further announcement will be made following the closure of the Bookbuild, confirming final details of the Placing.

The Placing is not being underwritten and the Placing is not conditional on a minimum amount being raised.

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