Alien Metals cancels second tranche of short-term funding

18th Aug 2023 08:48

(Sharecast News) - Minerals explorer and developer Alien Metals announced on Friday that, having raised £2m through a placing, it had informed its lender Bennelong that it would not be drawing on the second tranche of funding.

The AIM-traded firm said the tranche amounted to $0.5m, and was part of the convertible securities agreement set on 3 July.

It said the decision meant that Bennelong now retained a total of $0.5m in convertible securities, pertaining to the first tranche, while it also held 10,000,000 warrants.

"We are pleased to announce that the company will not be drawing on the Tranche 2 funding to help with the company's medium-term financing projects," said chief executive officer Troy Whittaker.

"The company successfully raised £2m through a placing announced to the markets last week to help advance the Hancock Project and unlock the value contained within Pinderi Hills.

"We would like to thank all shareholders, both existing and new, who participated in the placing."

Whittaker said that with their support, the firm was able to provide the withdrawal notice to the lender.

"We have a strong and loyal relationship with Bennelong Limited, a major shareholder and a strong advocate in the story of Alien.

"With the implementation of the new board and executive changes announced earlier this month, we are striving to deliver on our promises, and this is the first step in that journey."

At 0830 BST, shares in Alien Metals were up 2.32% at 0.19p.

Reporting by Josh White for Sharecast.com.