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RNS Number : 6782X Altona Rare Earths PLC 22 December 2023
22 December 2023
ALTONA RARE EARTHS PLC
("Altona" or "the Company")
£250,000 LOAN FACILITY
Altona (LSE: REE), a resource exploration and development company focused on
Rare Earths in Africa, announces that it has entered into a loan facility
("the Facility") with Catalyse Capital Limited ("Catalyse").
The Facility enables the Company to drawdown a total of £250,000 over two
tranches in January and February 2024 (the "Loan"). The proceeds will be used
principally to continue advancing priority Prefeasibility Study ("PFS")
activities, with a focus on metallurgy, for the Monte Muambe rare earths
project.
The Loan has a repayment date of 20 December 2024 and carries a fixed interest
rate of 20% per annum. Catalyse will also receive warrants equal to 100% of
the loan value plus interest, with a four-year expiration date from the
drawdown. The exercise price of the warrants is the lower of 2.5 pence each or
the price of any equity placing the Company may carry out over the next 24
months.
Catalyse may elect to receive the due interest and capital in Altona ordinary
shares at the lower price of either 2.5 pence or the price of any placing the
Company may carry out during the period while the Loan is unpaid.
Cédric Simonet, CEO of Altona, commented:
"The Company has produced all the deliverables planned at the June 2023
fundraise in the use of proceeds, including the maiden Mineral Resource
Estimate, the Scoping Study, the increased holding in Monte Muambe to 51%, the
Mining License application, as well as initial Phase 3 in-fill drilling at
Target 4.
"The Company is now assessing various options to fund the entire PFS, taking
into consideration the current market conditions and the best interest of its
shareholders.
"Catalyse has previously shown its support to the Company and this loan
facility will enable us to continue advancing high-priority PFS activities
over the coming months, bridging us while avoiding an unnecessary dilutive
placing in the current market environment."
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).
To subscribe for RNS alerts, please visit:
https://www.altonare.com/investors/regulatory-news-alerts/
(https://www.altonare.com/investors/regulatory-news-alerts/)
-ends-
Altona Rare Earths Plc
Cédric Simonet,
CEO
+44 (0) 7778 866 108
Christian Taylor-Wilkinson, Business
Development
+44 (0) 7795 168 157
Novum Securities Ltd (Corporate
Finance)
+44 (0) 20 7399 9400
David
Coffman
Daniel Harris
Allenby Capital Ltd (Joint
Broker)
+44 (0)20 3328 5656
Kelly Gardiner / Guy McDougall (Sales)
Nick Athanas (Corporate Finance)
Optiva Securities (Joint
Broker)
+44 (0) 20 3411 1882
Daniel
Ingram
Yellow Jersey PR (Financial
PR)
+44 (0) 20 3004 9512
Sarah Hollins
Annabelle Wills
About Altona Rare Earths Plc
Altona is a resource exploration and development company focused on Rare
Earths in Africa. The Company is listed on the Main Market of the London Stock
Exchange.
Rare Earths are a group of 17 chemical elements, many of which are critical to
the World's ongoing transition from carbon-based to renewable energies, and to
the defence and communication sectors.
The Company currently focuses on the development of Monte Muambe, its flagship
Magnet Rare Earths Project, located in Northwest Mozambique. The Project was
acquired in June 2021, and the Company currently holds 51%. Altona has so far
drilled over 7,800m, and defined a maiden JORC Mineral Resource Estimate of
13.6 million tons at 2.42% TREO. A Competent Person Report including the
Scoping Study for Monte Muambe was published on 18 October 2023. The Project
is now entering its Prefeasibility Study stage.
Altona continues to take advantage of its position in Africa to assess other
possible Rare Earths opportunities on the Continent.
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