Key points:
- Alien Metals shares barely moved on approval of Munni Munni’s takeover.
- Investors ignored the approval, leaving UFO shares trading sideways.
- The junior minor owns mines with significant future revenue potential.
The Alien Metals Ltd (LON: UFO) share price barely moved after the mining company announced that it had received a letter of “no objection” from the Australian Foreign Investment Review Board (FIRB) regarding its acquisition of the Munni Munni project.
Investors appeared unbothered by the news, which cleared the path for Alien Metals to acquire a 100% stake in the Munni Munni Platinum Group Metals and Gold Project in the West Pilbara, Western Australia.
Also Read: Best Copper and Copper Mining Stocks to Buy.
The miner announced the planned acquisition on 24 November 2021. One of the critical conditions of the takeover was that the company must get a no-objection from Australian authorities for the acquisition to proceed.
Now that the FIRB has approved the takeover, Alien Metals said that it would proceed with the remaining conditions to complete the acquisition over the coming weeks.
Alien Metals reminded investors that the Munni Munni project has one of the most extensive ultramafic intrusions in the West Pilbara region and is one of the largest undeveloped primary Platinum Group Elements (‘PGE') Resources in Australia.
Still, investors were not paying attention to the news, or they did not think the approval warranted a higher stock price for Alien Metals.
The mining company has reported many positive developments, including discovering high-grade iron ore at its Hancock mine earlier this month. Samples taken from an open-pit mine contained 62.2% iron ore deposits.
In January, Alien Metals reported positive initial drill results from its Elizabeth Hill silver project, demonstrating extremely high-grade silver deposits near the surface.
Some of the initial drill results highlighted 8,326 g/t Ag @ 9.7m from 15m in one drill hole and 19,865g/t Ag @ 1.7m from 2m in another hole.
These results are extremely rare in the mining industry, demonstrating the significant potential of the Elizabeth Hill silver project.
Bill Brodie Good, Alien Metals CEO & Technical Director, commented: “Receiving FIRB approval from the Australian Government for the acquisition of the Munni Munni Project satisfies one of the most significant regulatory conditions precedent to the transaction. We are now working on finalising the outstanding aspects to the conditions precedent to be able to complete soonest and start working in earnest on this very exciting project.”
Alien Metals’ share price has risen 14.8% in 2022 and could be trading much higher in future, making it an attractive investment target.
*This is not investment advice. Always do your due diligence before making investment decisions.
Alien Metals share price.
Alien Metals shares barely moved today after getting approval from Australian authorities. Are investors missing something?
