10 November
2022
ALTONA RARE EARTHS
PLC
(“Altona” or “the Company”)
SHORT-TERM LOAM
FACILITY
Altona (AQSE: ANR), a rare earths exploration, development and
mining company, announces that it has entered into a short-term
loan facility ahead of its proposed admission to the London Stock
Exchange (“Admission”).
The Company is able to drawdown £150,000 in two tranches during
November, from Align Research Investments Ltd, in order to complete
its 2022 operations programme and provide funds for the assay costs
at its Monte Muambe rare earths project in Mozambique.
The loan has a repayment date of the earlier of either Admission
or 31 January 2023 and carries a
fixed interest rate of 15%. Align will also receive warrants equal
to 150% of the loan value, with a three-year expiration date from
drawdown. The exercise price of the warrants is the lower of 12p
each or the price of any placing the Company may carry out during
the next 18 months.
Align may elect to receive the due interest and capital in
Altona ordinary shares at the lower price of either 8 pence, or the price of any placing the Company
may carry out during the period while the loan is unpaid.
Christian Taylor-Wilkinson,
Chief Executive of Altona, commented, “In order to publish this
year’s high-value milestone, the Mineral Resource Estimate
in Q1 2023 as per our published strategy, we felt that taking this
loan facility was the best course of action.
“We chose to work with Align Research as their model of
assisting companies with short term finance allowed us to prevent
further equity dilution ahead of the proposed Admission.”
This announcement contains
information which, prior to its disclosure, was inside information
as stipulated under Regulation 11 of the Market Abuse (Amendment)
(EU Exit) Regulations 2019/310 (as amended).
-ends-
For further information, please visit www.altonaRE.com or
contact:
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. Resource Drilling commenced in April 2022 and it will publish a maiden Resource
Estimate in Q1 2023, and a Scoping Study in Q2 2023. The Company is
in the process of investigating other REE opportunities in
Africa.