Alien Metals
Interview with Non-Executive Technical Director Robert Mosig
Good Afternoon Team.
Please have a listen as Rob and I shoot the breeze, highlighting the value created by the new JV with Errawarra (soon to be rebranded to West Coast Silver).
Errawarra was the top ASX riser yesterday - and, I believe the only pure-play silver project in Australia.
ASX investors will love the story.
Alien Metals has secured A$880k (A$500k cash + A$378k equity from sell-down) without any dilution.
Errawarra Resources has acquired 70% of the Elizabeth Hill Silver Project, alongside 70% of the silver rights over the Pinderi Hill tenements. Alien retains 30% of both, free-carried to decision to mine - with the JV managed and fully funded by Errawarra.
Value at ERW’s Closing price at A$0.054 is A$6.38 million.
A$880k (cash + ERW share sale proceeds)
A$1.6m (12.1% equity in ERW post-sell down)
A$3.9m (30% direct project interest based on pro-forma valuation)
Alien investors get exposure to significant upside without capital risk: at just A$0.10, Alien’s stake would be worth >A$10 million.
Elizabeth Hill is one of Australia’s highest-grade historic silver mines
Recent drilling highlights include:
19.7m @ 3,198 g/t Ag
52m @ 702 g/t Ag
42m @ 377 g/t Ag incl. 13m @ 1,102 g/t Ag
Elizabeth Hill originally closed when silver was at US$5/oz, and it’s now at US$34/oz - and rising. Some analysts (including me) think US$50/oz is around the corner given the historic gold-silver ratio disconnect.
Fieldwork will start within the next two weeks, with drilling to start within six to eight weeks.
We also now have cash to give Sternship Advisers the runway to work out the best deal for Hancock, which is where the Alien re-rate lies.
For context, CZR Resources’ Robe Mesa iron ore project is currently subject to a bidding war - with Rio Tinto valuing the asset at A$75 million…
Demand for iron ore is there and Alien now has a runway to execute.
Unfortunately, I had to give up my attempt to listen to this, because of the poor sound quality.
As a general comment, it's understandable that Alien doesn't have the money to proceed with Elisabeth Hill on its own: it needs to find a partner. However, one might have hoped that this did not involve giving away 70% of the project to a partner who is almost as broke as Alien and has to put out the begging bowl to scrape together a few A$millions.