Altona Rare Earths plc has secured a £150,000 loan to complete its 2022 programme and assay costs for its Monte Muambe project in northwest Mozambique.
MRE
The company will draw down the short-term loan facility from Align Research Investments Ltd in two tranches during November at a fixed interest rate of 15%.
“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,” said chief executive Christian Taylor-Wilkinson.
“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.”
Altona will repay the loan either on the earlier of its planned admission on the Standard Segment of the London Stock Exchange or by 31 January 2023.
Align will 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 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 carries out during the period the loan is unpaid.