19 August
2022
ALTONA RARE EARTHS
PLC
(“Altona” or “the Company”)
CONDITIONAL
PLACING,
CONDITIONAL
DIRECTORS DEALING
and
UPDATE ON LSE
LISTING
Altona (AQSE: ANR.PL), a mining exploration company focused on
the evaluation, acquisition and development of Rare Earth Elements
(“REE”) mining projects in Africa,
announces it has conditionally raised £1.1 million, via a placing
of 13,750,000 million new ordinary shares at 8 pence each (“the Placing”).
The Placing is conditional on, inter alia, the Company’s
Admission of its entire ordinary share capital to the Official List
(by way of Standard Listing under Chapter 14 of the Listing Rules)
and to trading on the London Stock Exchange’s Main Market for
listed securities (“Admission”), which is expected by the end of
September. Consequently, the new ordinary shares will not be issued
until Admission and the total number ordinary shares currently
issued remains 37,484,999.
Assuming the Placing is concluded the Company will issue
warrants to incoming investors on a one-for-one basis, exercisable
at 12 pence per share, which carry an
expiration date of two years from Admission. The Company will also
issue a “piggyback” option at 18
pence, with a three-year life from Admission, and which will
be issued to investors who exercise their 12
pence warrant within the “trigger” period. This trigger
period being within 30 days of the share price trading above
12 pence, on a volume-weighted
average price (“VWAP”) basis for 10 consecutive days.
Directors Participation
Christian Taylor-Wilkinson,
Cedric Simonet and Martin Wood, each of whom are Directors of the
Company, have agreed to participate in the Placing for an aggregate
of 1,187,500 Placing shares at the issue price. On Admission, the
interests of the participating Directors in the Company’s enlarged
share capital will be as follows:
Participating
Director
|
Number of Placing
Shares |
Resultant
Shareholding |
% Share Capital as enlarged by
the Placing |
Christian Taylor-Wilkinson |
625,000 |
2,470,811 |
4.82 |
Cedric Simonet |
312,500 |
594,011 |
1.16 |
Martin Wood |
250,000 |
788,462 |
1.54 |
Use of Funds
The funds will be deployed to complete a JORC compliant maiden
resource estimate at the Company’s flagship Monte Muambe Rare
Earths mining project, in northwest Mozambique, which is expected to be published
in Q1 2023. The funds will also allow the Company to complete a
Preliminary Economic Assessment (“PEA”) and Scoping Study at Monte
Muambe, which is expected in Q2 2023.
On 8 August 2022 Altona published
a JORC compliant Exploration Target for Monte Muambe, reporting a
potential resource of up to 56.6 million tonnes at a grade of 1.65%
Total Rare Earths Oxide (“TREO”). This figure included a
well-defined high-grade zone of 11.5 million tonnes at 2.41%
TREO.
Monte Muambe continues to exceed the Directors’ expectations
with regards to grade and size, leading them to believe that this
project could become a significant provider of rare earths to the
global supply chain within a few years.
Christian Taylor-Wilkinson,
Chief Executive of Altona, commented, “Altona has a commitment
to become a supplier of critical rare earth metals into the UK and
European supply chain by 2026, to ease the rising dependency on the
Chinese market. We remain on target to achieve our exploration
goals for 2022 and our recent results from Monte Muambe has led us
to believe that the project could become a significant producer of
rare earths.
“We are delighted that with the support from existing
shareholders and new investors we have obtained the funding
commitments, which will allow us to apply for a listing on the LSE
and execute our planned operational strategy for the next 12
months.”
For more information on Altona and its current mining projects
please visit: www.altonaRE.com
-ends-
Altona Rare Earths Plc
Christian Taylor-Wilkinson, Chief
Executive
+44 (0) 7795 168 157
Martin Wood, Non-Executive
Chairman
+44 (0) 7880 787 080
Alfred Henry Corporate Finance Ltd (AQSE Corporate
Adviser )
Jon Isaacs / Nick
Michaels
+44 (0) 20 3772 0021
Optiva Securities (Broker)
Daniel
Ingram
+44 (0) 20 3411 1882
About Altona Rare Earths Plc
Altona is a mining exploration company focused on the
evaluation, development and extraction of Rare Earth Element (REE)
metals in Africa. It owns a REE mining project in
Mozambique; the Monte Muambe
Project, a significant Light REE mining project in the northwest of
the country, where exploration work commenced on 1 October 2021. Resource Drilling commenced in
April 2022 and it will publish a
maiden Resource Estimate in Q1 2023. The Company is in the process
of investigating other REE opportunities in Africa.
.