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PERTH – Alien Metals Limited (AIM:UFO), a mining exploration and development company, announced on Monday that it has completed a joint venture transaction with Errawarra Resources Ltd (ASX:ERW), soon to be known as West Coast Silver Limited (ASX:WCE), for the Elizabeth Hill Silver Project in Western Australia. The agreement, which was initially announced on March 24, 2025, received approval from Errawarra shareholders on Sunday.
Under the terms of the joint venture, Errawarra, through its subsidiary Crest Silver Pty Ltd, has acquired a 70% interest in the Elizabeth Hill tenement and the rights to mine silver at Pinderi Hill. Alien Metals will retain a 30% interest in the joint venture and will receive approximately A$2.5 million, including A$0.9 million in cash and 30.5 million Errawarra shares.
The cash consideration received by Alien will support its working capital and the development of its Hancock iron ore and Pinderi Hills platinum group metals projects. The transaction also gives Alien a 12.1% equity stake in Errawarra, post-share sell down, aligning its interests with the success of the joint venture.
Errawarra will manage and fund the joint venture operations up to the decision to mine, and has raised A$3 million in capital to finance the upcoming drilling program.
The Elizabeth Hill Silver Project is known for its high-grade silver, having produced 1.2 million ounces of silver from approximately 16,830 tons of ore at an average grade of 2,194g/t. The previous mining operations ceased in 2000 due to low silver prices and a dispute among joint venture partners at the time. The project is located in a tier-1 mining jurisdiction with processing facilities nearby, suggesting potential for future development.
This joint venture represents a strategic move for Alien Metals, allowing the company to focus on its core iron ore projects while maintaining exposure to the silver market through its retained interest in Elizabeth Hill.
The information for this report is based on a press release statement from Alien Metals Limited.
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