Alien Metals (LON: UFO) shares are sliding on Thursday after the company confirmed that the earn-in agreement signed with Capstone Mining has been terminated immediately.
The Earn-in Agreement relates to the company's Donovan 2 Copper-Gold project in Mexico.
Bill Brodie Good, CEO & Technical Director of Alien Metals, said: “Capstone have decided not to proceed with the exploration on Donovan 2 advising that their corporate strategy has shifted and also that they did not receive sufficient confidence from their maiden drilling recently completed on Donovan 2 to continue.
“Capstone advised that their work was not exhaustive and with coincidental work just done a couple of days ago by Alien we are already starting to think about how we may approach further exploration work. It has been great working with the Capstone team and we appreciate their input to date which we hope to build and develop on for the future of the project.”
Capstone will provide Alien with all the technical data generated during their tenure and a final report outlining their findings.
Alien will now review this and combine it with its own technical views to decide the way forward.
The AIM-listed company will revert back to being the project operator, retaining a 100% interest in the project.
Alien Metals' share price is currently down over 10% at 0.96p.
Should you invest in Alien Metals shares?
Alien Metals shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are UFO shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
