REG - Altona Rare Earths - Growth Capital Facility

Altona Rare EarthsAnnouncement

06/05/2026 07:00

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RNS Number : 1312D  Altona Rare Earths PLC  06 May 2026

 

6 May 2026

 

Altona Rare Earths Plc

("Altona" or the "Company")

 

Growth Capital Facility

 

Altona (LSE: REE), (OTCQB: ANRCF), a resource exploration and development
company focused on critical raw materials in Africa, is pleased to announce it
has today executed a growth capital facility ("Facility") agreement with Zeus
Capital Limited ("Zeus") to raise gross proceeds of up to £2 million. The
Facility is designed to accelerate value creation activities stemming from the
recent Monte Muambe fluorspar and gallium Mineral Resource Estimates
announcement, while preserving the Company's flexibility and protecting
shareholders from unnecessary dilution.

 

HIGHLIGHTS

 

·    Flexible medium-term funding Facility to support the Company's growth

·    Shares will only be sold at prevailing market prices (not less than
the market bid price)

·    The Facility is designed to minimise dilution and protect shareholder
value

 

The Facility offers the Company a flexible way to raise funds in a controlled
manner, over time, and at prevailing market prices.

 

Proceeds from the Facility are intended to bolster the Company's cash balance
of c.£1m as at 30 April 2026. The proceeds will support the work programme
arising from the Monte Muambe Mineral Resource Estimates announced on 5 May
2026, including the completion of the fluorspar scoping study, the on-going
gallium metallurgical test work and the heavy rare earths workstreams.
Proceeds will also support general working capital and the continued
implementation of the Company's diversification strategy.

 

How the Facility works

 

Unlike traditional discounted fundraises, this Facility gives the Company
control, flexibility, and alignment with market prices.

 

·    The Facility will be drawn in four separate tranches ("Tranches", or
"Tranche")

·    For each Tranche, the Company will issue Zeus ordinary shares of 1
pence each in the Company (the "Facility Shares").

·    Issued Facility Shares will be fully paid and rank pari passu in all
respects with the existing ordinary shares of 1 pence each in the Company
("Ordinary Shares").

 

Zeus will use reasonable endeavours to sell each Tranche's Facility Shares on
behalf and for the benefit of the Company. The Facility Shares will be sold
during the first 3 months of each Tranche, at not less than market bid price.

 

Zeus will receive a broker fee from the gross proceeds of the sale of the
Facility Shares. On completion of each Tranche, the net proceeds will be paid
to the Company and announced.

 

Zeus may request the drawdown of subsequent tranches at any time until the
Facility is fully utilised, subject to the Company's right to veto any such
further drawdown at its sole discretion.

 

If any Facility Shares have not been sold by Zeus by the end of a Tranche's
agreed term, the Company will be obliged to consider a potential buyback of
any outstanding Facility Shares, subject to shareholder approval.

 

Issue of Equity

 

The Company has today issued Zeus with 12,000,000 Ordinary Shares being the
First Tranche under the Facility (the "Initial Tranche Shares"). This
corresponds to approximately 2.62% of the Company's issued share capital as
enlarged by the Initial Tranche Shares. The Initial Tranche Shares will be
issued pursuant to the Company's block listing facility as announced to the
market on 23 March 2026 and will be admitted to trading at 8:00 a.m. on or
around 6 May 2026.

 

Total Voting Rights

 

In accordance with the provision of the Disclosure Guidance and Transparency
Rules of the Financial Conduct Authority, the Company confirms that, following
the issue of the Initial Tranche, its issued Ordinary share capital will
comprise 457,666,113 Ordinary Shares. All the Ordinary Shares have equal
voting rights and none of the Ordinary Shares are held in Treasury. The total
number of voting rights in the Company will therefore be 457,666,113 The above
figure may be used by shareholders as the denominator for the calculations to
determine if they are required to notify their interests in, or a change to
their interest in, the Company.

 

Cedric Simonet, CEO, commented: "The exciting Monte Muambe project
developments announced yesterday have generated multiple interdependent
catalysts which will result in more shareholder value creation. The growth
capital facility established with Zeus is innovative and transformative. It
provides the required flexibility to fit our medium-term cash flow
requirements as we advance through this exciting phase of the project's life.
It also gives us the confidence to execute the required work streams. At the
same time, the built-in safeguards are designed with shareholder's interest in
mind, in particular avoiding an unnecessary discounted fundraise for working
capital."

 

 

 

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.

 

 

-Ends-

 

To subscribe for RNS alerts, please visit: https://investors.altonare.com/
(https://investors.altonare.com/)

 

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 has received a US$
1.875 million grant from USTDA 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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