Alien Metals (AIM:UFO), the minerals exploration and development company, higghlighted that its joint venture partner West Coast Silver (ASX:WCE) has raised A$6 million, approximately £3.2 million, through a placement to institutional and professional investors.
The shares were priced at A$0.095 each, a 13.8% discount to the 15-day volume-weighted average price before West Coast Silver's trading halt.
The funds will finance further exploration and development drilling, geotechnical and metallurgical testwork, an updated mineral resource estimate and a scoping study, building on recent drill results that identified both near-surface and deeper mineralisation at Elizabeth Hill.
West Coast Silver plans to use the additional capital to bring forward exploration at Elizabeth Hill South and West, widening the hunt for further deposits.
"Demand significantly exceeding West Coast Silver's target" reflects strong backing for the project, said Vince Fayad, Non-Executive Chairman of West Coast Silver and chief executive of Alien.
Alien holds a 30% free-carried interest in Elizabeth Hill and 30.5 million shares in West Coast Silver, an approximate 8.7% stake ahead of the placement's completion.
The placement is expected to complete on or around 8 September.
News Intelligence what this means for the company
West Coast Silver has raised A$6 million at A$0.095 per share (a 13.8% discount to the 15-day VWAP) to fund drilling, metallurgical work, and a scoping study at Elizabeth Hill, where Alien Metals holds a 30% free-carried interest. The capital acceleration is material to the joint venture's timeline—an updated mineral resource estimate was expected in Q4 2026, and this funding now enables broader exploration at Elizabeth Hill South and West—but the raise itself does not directly change Alien's cash position or ownership stake materially (Alien's 8.7% holding in West Coast Silver will dilute slightly post-completion).
The placement validates market confidence in Elizabeth Hill's near-surface and deeper mineralisation and de-risks the near-term funding path for resource definition and scoping work. However, Alien remains a 30% free-carried partner with no cash outlay required; the upside depends entirely on West Coast Silver's execution and the project's ability to move toward development economics.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.