Alien Metals Ltd on Friday said it has issued a notice to cancel the second tranche of funding from its short term lending agreement.
The Australia-focused minerals exploration and development company said it has issued the notice to its lender, Bennelong Ltd. It noted that it will not be drawing on tranche two of its convertible securities. This amounts to $500,000.
Accordingly, the lender holds in total $500,000 of convertible securities in respect of tranche one along with 10.0 million warrants.
The convertible funding facility was inked in July.
On Thursday last week, Alien Metals said it had raised £2 million through the placing of 1.0 billion shares at a price of 0.2 pence each.
Proceeds will be used to fund UK and Australian salaries, overheads, corporate activities and working capital until early 2024, Alien Metals said. They will also be used for funding exploration activities.
Chief Executive Officer Troy Whittaker said: ‘We are pleased to announce that the company will not be drawing on the tranche two funding to help with the company’s medium-term financing projects. The company successfully raised £2 million through a placing announced to the markets last week to help advance the Hancock project and unlock the value contained within Pinderi Hills.’
Shares in Alien Metals were up 2.6% to 0.19 pence each in London early Friday.
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