Alien Metals signs exclusivity deal for Donovan 2 farm-out

Minerals exploration and development company Alien Metals has entered into an exclusivity agreement for the potential farm out of an interest in its Donovan 2 Copper-Gold project in Mexico, it announced on Wednesday.

The AIM-traded firm said the agreement, with mid-tier North American mining company Capstone Mining, would provide for a 45-day period for Capstone to undertake due diligence to their satisfaction.

During the period, the parties said they intended to enter into a definitive agreement, which would provide for a staged earn-in to the Donovan 2 Project through a combination of carried expenditure and cash payments.

Alien said itself and Capstone were currently finalising the commercial terms of the farm-out .

“The signing of the exclusivity agreement is the result of many months of discussions between the parties and fits with the company's stated strategy of unlocking value in its project portfolio,” said chief executive officer and technical director Bill Brodie Good.

“We have been impressed by the process undertaken to date and the commitment shown by Capstone Mining, and I am looking forward to working closely with them to promptly finalise outstanding due diligence matters and move to definitive agreements as soon as possible.”

At 1645 BST, shares in Alien Metals were down 6.59% at 0.78p.