Altona Energy plc today announced it had raised £138,459.12 before expenses for its exploration projects for rare earth minerals in East Africa.
The funds were raised through the placing of 2,130,140 new ordinary shares at an issue price of 6.5 pence per share. Altona expects to be readmitted to trading on the Aquis Stock Exchange tomorrow (2 December 2020) before starting the company’s planned move to the London Stock Exchange.
The net proceeds will be used to complete Altona’s due diligence on two acquisition targets in Malawi and Uganda for which it has exchanged heads of agreements. bit.ly/2I0Jksm
A statement from Altona read: “The company’s financial situation remains challenging and, to be able to deliver on its immediate business plan it will require a further small capital raise within the next four months, which it will look to carry out in either December or January.”
Altona said it hoped that the LSE stock market listing would attract funds required to start its planned initial stage exploration programme of rare earths in Africa. The company hopes to sign final agreements in late December 2020.
Altona’s non-executive chairman Martin Wood said that the company had many years of hard work ahead but it had achieved its first milestone.
“The rare earths sector is now starting to be recognised as a strategically vital element of the broad portfolio of critical metals required by the green revolution and by advanced technology industries.
“Importantly, Africa is emerging as a leading jurisdiction and provider of these metals and Altona is now well-placed to take full advantage of this rising trend.”