30 October
2020
ALTONA ENERGY PLC
(“Altona” or “the Company”)
Trading
Statement
to 30 September 2020
Altona (Aquis Growth Market: ANR.PL), a mining exploration
company with a focus on Rare Earth Element (“REE”) mining projects
in Africa, announces its trading
statement for the three-months ended 30
September 2020, in accordance with its Aquis Stock Exchange
obligations.
Trading in the Company’s shares was suspended on 12 February 2020 and will remain so until the
Company concludes a successful round of funding, when it will apply
to AQSE to restore trading in the shares.
During the quarter the Company continued in its efforts to
advance its new Rare Earth Metals strategy in Eastern Africa, with a number of milestones
being achieved in the period under review.
Operational Review
On 13 July it was announced that two highly experienced mining
professionals had joined the Company in a consultant capacity;
Cedric Simonet, a French national
living in Kenya, was appointed as
Geologist and Gavin Beer, a
New Zealand national living in
Australia, was appointed as
Metallurgist. Since their appointments, both consultants have
proven their knowledge and experience in the Rare Earths mining
sector in the many choices and decisions the board has needed to
make.
The Company signed Heads of Agreement with Akatswiri Mineral
Resources (“Akatswiri”) on 1 September, following a three-month
period of negotiation. Akatswiri owns 100% of Akatswiri Rare Earths
(“ARE”), which Altona has agreed to acquire an initial 51% interest
in, once due diligence and a successful fund raise has been
completed. Altona is able to increase its stake in ARE to 75% on
completion of certain milestones. ARE is in the process of being
granted the Exploration Licence (APL 0153) over the Chambe Rare
Earth Project (“Chambe”) in South-East
Malawi.
Chambe has had over $4 million
spent in exploration to date by previous exploration companies and
is an excellent example of a large, ionic adsorption clay-hosted
Rare Earth Elements (“REE”) project, bearing appreciable quantities
of Critical Rare Earth Oxides (“CREO”) and heavy and light REEs,
particularly Ytterbium, Dysprosium, Yttrium, Neodymium and
Praseodymium. Extensive exploration work has been carried out on
the site since September 2010,
confirming the presence of mineralised Rare Earth Oxide clays,
similar to many of the larger REE mines in China. The benefits of extracting REE from
ionic clay deposits include lower operating and capital costs, as
well as shorter times for development.
The Company signed Heads of Agreement on 21 September with
Leadway Group Ltd, which was granted Exploration Licence (EL00115)
on 27 October, known as the Nankoma Rare Earths Project, in
South-Eastern Uganda. Altona has
the right to acquire a 51% interest in Leadway Group (rising to
70%), upon completion of due diligence and a successful fund
raise.
Nankoma Rare Earths Project is also expected to be an ionic
adsorption clay-hosted project, due to the “nearology” with
neighbouring tenements immediately to the north and west. These
have shown to be rich in high levels of CREOs, at 310 ppm, which
include the elements, Neodymium and Praseodymium, two of the REEs
which Altona is focused on extracting, due to their demand in many
technology and green industries.
On 24 September the Company launched a fund raise on the NR
Private Market sophisticated crowdfunding platform, for private
investors, to raise up to £500,000 at a discounted price of
6.5 pence, which also included
warrants at 12 pence. This fund raise
remains open until 11 November and investors wishing to find more
details about Altona’s investments, should visit;
www.NRPrivateMarket.com
Financial Review
While the Company’s immediate working capital requirements
(mainly its PLC costs), have been significantly reduced over the
past two years, the financial position of the Company is such that
it cannot execute its business plan without immediate funding. If
the fundraising on NR Private Market is not successful, the
proposed strategy will not be able to go ahead and it is possible
that the Company will go into administration.
-ends-
For further information, please visit www.altonaenergy.com or
contact:
Altona Energy
plc
Christian Taylor-Wilkinson, Interim CEO
Martin Wood, Non-Executive Chairman |
+44 (0) 7795 168 157
+44 (0) 7880 787 080 |
Alfred Henry
Corporate Finance Ltd (NEX Corporate Adviser)
Jon Isaacs / Nick Michaels |
+44 (0) 20 3772 0021 |
|
|
Company Information
Altona is a mining exploration company focused on the
evaluation, development and extraction of Rare Earth Element (REE)
metals in Eastern Africa.
The Company was admitted to trading on AIM on 10 March 2005 and was subsequently admitted to
Aquis Stock Exchange (previously NEX) on 1 February 2019. A
copy of its Admission documents dated 4
March 2005 can be accessed on its website,
www.altonaenergy.com. This website is where items can be
inspected under Rule 75 of the Aquis Rules for Issuers, from
1 February 2019.