Altona Rare Earths plc has agreed a £250,000 loan to advance the prefeasibilty study for Monte Muambe in northwest Mozambique.
The two-tranche loan from Catalyse Capital Ltd, which has previously supported the company, will progress work focused on metallurgy.
The repayment date is 20 December 2024 and the loan carries a fixed interest 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.
Altona chief executive officer Cédric Simonet said that Altona was assessing “various options” to fund the entire PFS.