Alien Metals secures short-term Funding Facility for project development
Summary
Rob Mosig, to the Board as a Non-Executive Director, who brings significant expertise in exploration, development, and strategic partnering, whilst having direct experience on the Companys PGM and base metals project in the West Pilbara. An Advisory Board is to be established, consisting of technical and mining industry experts to guide the Company on the various strategic options currently available to Alien Metals for the financing and/or development of its key assets. Conversion Price: the balance due under the Facility (including accrued interest at the end of each fiscal quarter) can be converted into Ordinary Shares at the option of the Lender at the lower of:(a) 85% of the VWAP over the ten trading days prior to the date of the Facility, converted into $A at the average of the daily \xa3/A$ exchange rate published by the Reserve Bank of Australia over that period; or(b) the price per Ordinary Share offered by the Company in any equity capital raising offered between the date of the deed and the Repayment Date, converted into A$ at the average of the \xa3/A$ exchange rate published by the Reserve Bank of Australia over the five business days before settlement of that raising.For each Ordinary Share issued to the Lender pursuant to this conversion right, the Lender will at the same time also be issued one Conversion Warrant (see below for the terms applicable to each Conversion Warrant). In particular, key decisions will require the approval of the Lender.It is agreed that the Lender will not convert any amounts outstanding under the Facility or exercise any Conversion Warrants such the conversion or exercise, respectively, would result in the Lender together with anyone in concert with it holding more than 29.9% of the then enlarged share capital of the Company.If the Lenders shareholding exceeds 20% of the Companys share capital as a result of conversion of any amount outstanding under the Facility or following an exercise of Conversion Warrants, it will negotiate in good faith entering into a relationship agreement with the Company and the Nominated Adviser from time to time containing customary provisions and protections as is usual for an AIM company.The funds raised under the Facility will be used for general short-term working capital needs and further progressing towards the grant of a mining lease in respect of the Hancock Project and further exploration targets recently identified as set out in the Companys Development Study on (AIM: 8 February 2024).The appointment of Technical Director, Rob Mosig, to the board will add significant exploration, development, and strategic partnering expertise. The close vicinity allows the Company to avoid extensive construction capital costs associated with airstrip, mining camp and associated services.\xb7 Provisional export capacity through the Port of Port Hedland has been secured (MoU executed) and remains on track for final approvals during the first half of 2024.Alien Metals has made significant progress on the Hancock Project and is currently in discussion with various parties regarding the required development funding.