Alien Metals to acquire Western Australian silver project

Exploration and development firm Alien Metals has conditionally agreed to acquire the Elizabeth Hill silver project in Western Australia from Karratha Metals.

Alien Metals will acquire a 100% interest in the formerly producing project, satisfying the transaction by issuing Karratha with 200 million common shares of 0.14p each and 50 million warrants in the group.

The AIM-listed firm will also lend KMG up to AUD 120,000 (£62,800) at an interest rate of 1% per month.

Lastly, Alien Metals will enter into a royalty agreement with an unnamed third party, under which the third party will be entitled to a royalty of 2% from all net smelter revenue from Elizabeth Hill.

Alien's technical director Bill Brodie Good said: "The Elizabeth Hill silver project is a great addition to our silver assets in Mexico and it is also complementary to the Hancock Ranges and Brockman Iron Ore projects located in the Pilbara Region of Western Australia.

"The historical information on the property viewed to date gives us excellent indication that this project has significant upside potential, especially as silver prices are now nearly four times the average price when production ceased in 2002."

As of 0945 GMT, Alien shares had slipped 4.44% to 0.17p.