Altona Rare Earths plc announced it had terminated its interest in the Chambe project in Malawi.
CONDITIONS PRECEDENT
The company added that its local joint venture partner had failed to complete the conditions precedent as set out in an agreement.
Altona said it had spent only minimal costs, mainly relating to due diligence, on the project.
The company had planned to start drilling during April 2022.
Representative of the local partner, Hilton Banda, is no longer a non-executive director of Altona with immediate effect.
INTEGRITY
“For Altona, acquiring a new project needs to be more than just the quality of the asset; it also has to be the willingness of our joint venture partner to follow the terms of the contract and work together to achieve a joint goal,” added chief executive Christian Taylor-Wilkinson.
“Unfortunately, this has not been achieved on this occasion and, although it is disappointing, we believe terminating the deal now is the right decision for us to take, to protect our integrity and shareholder value.
“We remain confident of acquiring a new REE [rare earth element] asset, discussions for which are currently in an early stage.”
MONTE MUAMBE
Altona added it expected the first assay results by the end of March from its Monte Muambe rare earths project in Mozambique.
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