REG - Altona Rare Earths - Fundraise to Repay Debt and Debt Extension

Altona Rare EarthsAnnouncement

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RNS Number : 0743D  Altona Rare Earths PLC  13 October 2025

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

 

 

13 October 2025

 

 

ALTONA RARE EARTHS PLC

("Altona" or "the Company")

 

Fundraise to Repay Debt, Debt Extension and Appointment of Corporate Broker

 

Altona (LSE: REE), a resource exploration and development company focused on
critical raw materials in Africa, is pleased to announce that it has raised a
further gross amount of £600,000 through the exercise of existing warrants
(the "Fundraise"). The net proceeds of the Fundraise will be used to repay
outstanding debt of £600,000.

 

This Fundraise follows the successful £851,950 raise completed in August
2025, the net proceeds of which are principally being used to advance the
fluorspar scoping study at Monte Muambe. Drilling at Monte Muambe has already
commenced, and an operational update is anticipated to be released in the
coming weeks.

 

The net proceeds raised via the Fundraise will be used to repay, in full, a
single debt facility with Tracarta Limited. In addition, the Company is
pleased to announce an extension to the remaining debt provider Catalyse
Capital Limited ("CCL") facility of £500,000 until 30 October 2026.

 

Details of the Fundraise

 

The Fundraise comprised the transfer and subsequent exercise of 40,000,000
warrants at an exercise price of 1.5 pence per share (the "Transferred
Warrants"), over 40,000,000 ordinary shares of 1 pence each in the Company
("Ordinary Shares") (the "Warrant Shares").

 

Immediately prior to the exercise of warrants (the "Warrant Exercise"), the
original warrant holder transferred their rights over the 40,000,000
Transferred Warrants to certain subscribers at nil cost, conditional upon
their participation in the Subscription, in order to help to streamline the
Company's capital structure and facilitate the immediate repayment of
£600,000 of outstanding debt.

 

Debt Extension and Interest Payments

 

The Company has agreed with Richard Jennings and CCL an extension to the
remaining £500,000 of debt, on the following terms:

·    extension to the maturity date until 30 October 2026;

·    annualised interest rate of 12%;

·    conversion right into Ordinary Shares at a price of 2.5 pence per
share; and

·    a one-off reprofiling fee of 10%, payable in shares at a price of 1.5
pence per share.

 

Accordingly, the Company intends to issue 3,333,333 new Ordinary Shares (the
"Reprofiling Shares") to satisfy the reprofiling fee following the approval of
their issuance at the Company's next annual general meeting of its
shareholders.

 

In addition, the Company has received notification from the lenders under both
above mentioned debt facilities (the "Lenders") that they have elected to
receive the due interest of £132,000, accrued under the Debt Facility
Agreements dated 27 June 2024, in the form of Ordinary Shares. Accordingly,
the Company will also issue 13,200,000 new Ordinary Shares (the "Interest
Shares") at a price of 1 penny per Interest Share, to satisfy the outstanding
debt interest.

 

Appointment of Broker

 

The Company is also pleased to announce the appointment of Zeus Capital
Limited as its corporate broker with immediate effect.

 

Admission and Total Voting Rights

 

The Warrant Shares and Interest Shares (together, the "New Shares") are being
issued from authorities granted to directors to issue new Ordinary Shares at
the annual general meeting of the Company's shareholders on 27 November 2024.

 

The Warrant Exercise Shares have previously been disclosed in a published
prospectus. Accordingly, the Company is not required to publish a prospectus
in order to issue these Shares.

 

Application is being made for the New Shares to be admitted to trading on the
Main Market of the London Stock Exchange which is expected to be on or around
17 October 2025. Following this issue of 53,200,000 new Ordinary Shares, which
will rank pari passu with the Company's existing Ordinary Shares, the
Company's enlarged share capital and total voting rights in the Company will
comprise 291,864,306. The Company has no shares held in Treasury. This
figure of 291,864,306 Ordinary Shares may be used by shareholders in the
Company as the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change in their
interest in, the share capital of the Company under the FCA's Disclosure
Guidance and Transparency Rules.

 

Cédric Simonet, CEO of Altona, commented:

"I am delighted to see the strong interest Altona's portfolio and value
proposition generates in the investment community, and how it materialised in
this additional funding which was an unsolicited approach by largely industry
specialists. The proceeds enable us to significantly reduce the Company's
debt, with the remaining balance extended by a further year. With a cleaner
balance sheet, this puts the Company in a much stronger position to capitalise
on the results of its current workflows and to create long-term value for our
shareholders. I would like to personally thank Richard Jennings and Catalyse
Capital for their unwavering support of the company over a number of years now
and continued belief in our assets. Without their assistance the future
profile of Altona would look very different."

 

 

-ends-

 

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Altona Rare Earths Plc

Cédric Simonet, CEO
       +44 (0) 7778 866 108 (cs@altonare.com)

Louise Adrian,
CFO
                   +44 (0) 7721 492 922 (la@altonare.com)

 

Strand Hanson (Financial
Adviser)
+44 (0) 20 7409 3494

Christopher Raggett

Imogen Ellis

 

Zeus Capital (Corporate
Broker)
                 +44 (0) 20 3829 5000

Simon Johnson

James Hornigold

 

 

 

About Altona Rare Earths Plc

 

Altona Rare Earths Plc (ticker: REE) is a London Main Market-listed
exploration and development company focused on unlocking the value of critical
raw materials across Africa. The Company is pursuing a diversified strategy,
targeting assets with potential for near-term monetisation alongside long-term
growth.

 

The multi-commodity Monte Muambe Project in northwest Mozambique is a highly
prospective tenement hosting rare earths, fluorspar, and gallium
mineralisation. Since acquiring the project in June 2021, Altona has drilled
over 7,800 metres, delivering a maiden JORC Mineral Resource Estimate of
13.6Mt at 2.42% TREO, secured a 25-year mining licence (granted December
2024), and published a Competent Person Report and scoping study for the rare
earths component of the project (October 2023). The Company is actively
engaging with the US Government, through USTDA, as a possible strategic
partner to advance the rare earths project through the prefeasibility stage.

 

In parallel, Altona is progressing plans to fast-track the development of
high-grade fluorspar veins identified along the western and southern margins
of Monte Muambe, with a targeted production of 50,000 tonnes per annum of
acid-grade fluorspar over a minimum 12-year mine life. Acid-grade fluorspar is
a key input in a wide range of applications, including hydrofluoric acid,
lithium battery electrolyte production, and nuclear fuel refining, placing
Altona in a strong position to supply this critical material.

 

The discovery of gallium mineralisation, with grades up to 550 g/t identified
to date, adds further value to Monte Muambe. The Company has established that
gallium will be concentrated in fluorspar production tailings and is assessing
its possible recovery as a by-product of fluorspar.

 

Altona's diversified portfolio also includes the Sesana Copper-Silver Project
in Botswana, strategically located just 25 km from MMG's Khoemacau Zone 5
copper-silver mine. Situated on a recognised regional contact zone for copper
deposits, Sesana represents a compelling exploration opportunity aligned with
Altona's growth strategy.

 

With a unique combination of critical raw materials projects, Altona is well
positioned to contribute to the global supply of highly sought commodities
essential for clean energy, high technology, defence and industrial
applications.

 

The Company and the Board remain actively focused on identifying and
evaluating additional projects that align with our investment profile and
strategic objectives, leveraging our extensive network and combined industry
experience to uncover compelling opportunities that can drive long-term
growth.

 

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