Alien Metals (UFO) Benefits as GreenTech Secures A$7.5m Funding for Munni Munni Project

Alien Metals (LSE:UFO) said its joint venture partner, GreenTech Metals, has successfully raised A$7.5 million from institutional and sophisticated investors to support Phase II exploration and development activities at the Munni Munni platinum-group metals and base metals project in Western Australia, as well as the Whundo project.

The latest funding round increases total capital raised for Munni Munni-related activities to more than A$12 million over the past six months, highlighting continued investor support for the critical minerals project and substantially expanding the available exploration budget.

As part of the placement process, Alien Metals sold nine million GreenTech shares for approximately A$700,000, providing an additional boost to its own cash resources while maintaining a significant strategic interest in both GreenTech and the Munni Munni venture.

Following completion of the two-tranche fundraising, Alien is expected to retain a 30% free-carried interest in the Munni Munni project alongside an equity stake of around 10% in GreenTech Metals. Management believes the arrangement allows the company to benefit from GreenTech’s technical expertise and funding capability while preserving long-term exposure to the project for shareholders.

The company’s investment outlook continues to be weighed down by weak financial fundamentals, including a lack of revenue generation, ongoing losses and negative free cash flow, although recent trends indicate some improvement in loss reduction and cash burn. Balance sheet leverage remains relatively low. Technical indicators have been more supportive, with the share price trading above key moving averages and momentum signals remaining positive. However, valuation metrics continue to be limited by the company’s loss-making status and absence of dividend income.

More about Alien Metals Ltd

Alien Metals Ltd is an AIM-listed mining exploration and development company focused on iron ore and critical metals projects in Western Australia. Its key asset is the 90%-owned Hancock Iron Ore Project in the Pilbara region, which contains a JORC-compliant resource and is being advanced toward a planned 2Mtpa mining operation with an estimated 10-year mine life. The company also holds interests in the Munni Munni and Elizabeth Hill precious and base metals projects.