30 April 2021
Altona Rare Earths Plc
(“Altona” or “the Company”)
TRADING UPATE
Altona (AQSE: ANR.PL), a rare earths exploration and mining
company, announces a trading update for the first quarter of
2021.
During the period the Company consolidated its status in the
rare earths mining sector by raising capital and appointing
experienced new board members. The hard work of the past 12 months
has put the Company in a strong position as it now has three
potential acquisition opportunities under consideration. The next
few months will see the completion of the rigorous due diligence
procedures it is currently carrying out on these assets. The
results of the due diligence, tgether with the board’s future
economic considerations for each project, will form the basis of
which assets the Company will acquire.
The Company entered into a new Memorandum of Understanding with
Ussokoti Investimentos Limitada on 24 March
2021 to acquire up to 70% of the Monte Muambe Rare Earths
Project in the Tete Province, Mozambique. Legal due diligence is underway
and the Company has 90 days (from 20 March
2021) to complete this process. Analysis of historic core
samples is also being completed to provide a more full picture of
this asset’s potential value, ahead of the board making its
decision to proceed.
In Uganda, the Company signed
an Option Agreement on 30 March 2021
to acquire 51% (rising to 70%) of the Nankoma Rare Earths Project,
before 30 June 2021. The Company has
collected and sent soil samples from this greenfield tenement to a
lab in Australia, for assay under
the guidance of Gavin Beer, Altona’s
Metallugist. It is expected that the results of this analysis will
be completed in May, which will be used to provide guidance to the
board in its decision to proceed, or not, with the acquisition.
Finally, in Malawi, the Company
is in the last stages of the due diligence process for the proposed
acquisition of the Chambe Rare Earths Project, for which it signed
the Heads of Agreement on 1 September
2020. The Company is waiting for its joint venture partner
in Malawi, Akatswiri Mineral
Resources Limited, to confirm the Malawian government’s approval of
Exploration Licence, APL 0153 for the Chambe Project. Once the
licence is granted by the Malawian Mines Department, it is expected
a binding agreement will follow allowing Altona to acquire this
exciting, ionic clay rare earths mining project.
To expedite the deal timetables, the Company has appointed local
law firms in each of the three jurisdications where it is looking
to acquire a rare earth mining project; namely, Mozambique, Malawi and Uganda. This move, which the board has agreed
will be the standard working practice for the Company in all future
acquisitions, has significantly improved the due diligence process
for Altona, both on the legal and technical side. Further, it has
provided increased confidence to the board that, should these and
any future acquisitions be considered economically viable, once the
due diligence has been competed, they will be concluded in a timely
manner, which will be a benefit to shareholders.
Therefore, the Company believes itself to be in a strong
position, with cash in the bank and all three African mining
opportunities progressing as planned. The Company remains positive
that everything within its control will be managed quickly and any
potential unexpected risks in the planned deals can be mitigated by
the experience provided by Altona’s board, to ensure ongoing
shareholder value. The Company will provide more information on the
completion of the three acquisiitons over the next few months,
should the Company choose to take them to fruition, as well as
reporting on progress of the Company’s planned listing on the
Standard Market of the London Stock Exchange, the application
process for which commenced in April
2021.
-ends-
For further information, please visit www.altonaenergy.com (a
new website, currently being built, can be found at
www.altonaRE.com) or contact:
Altona Rare Earths
plc
Christian Taylor-Wilkinson, CEO
Martin Wood, Non-Executive Chairman |
+44 (0) 7795 168 157 |
Alfred Henry
Corporate Finance Ltd (AQSE Corporate Adviser)
Jon Isaacs / Nick Michaels |
+44 (0) 20 3772 0021 |
Company Information
Altona is a exploration and mining company focused on the
evaluation, development and extraction of rare earth metals in
Central and East Africa.
The Company was admitted to trading on AIM on 10 March 2005 and was subsequently admitted to
Aquis Stock Exchange 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 4.14 of the AQSE Growth Market Access
Rulebook.