31 January
2022
ALTONA RARE EARTHS
PLC
(“Altona” or “the Company”)
BUSINESS
UPDATE
Altona (AQSE: ANR.PL), an exploration company focused on the
evaluation, acquisition and development of Rare Earth Elements
(“REE”) mining projects in Africa,
is pleased to provide shareholders with an update on its business
activity.
During the course of 2021 Altona has transformed into a
well-funded company, with a clear development strategy and two
potentially significant REE mining projects where development work
is underway and making progress. The focus for 2022 is to execute
the asset development plans at both sites with an initial focus on
proving the level and types of REE present.
During 2021, the Company completed acquisition agreements on two
sites: a Light REE project in Mozambique and a Heavy REE project in
Malawi. The deals were concluded
after careful due diligence and their evaluation as a prospect for
REE mining. By acquiring one light and one heavy REE project the
Company has potentially positioned itself in a unique position in
the rare earths supply chain.
In Mozambique, the Company
commenced Phase 1 exploration drilling at the Monte Muambe Project
in October 2021 and completed 43
holes totaling 3,131m (across six
targets within the licence area) in late November. Following
preparation at Intertek’s facility in South Africa, the RC chips and core samples
are currently undergoing assay with Intertek’s laboratory in
Australia, with the results
expected by the end of March 2022.
Phase 2 at Monte Muambe is expected to commence following the end
of the rainy season in April 2022.
The Work Plan and Budget for Phase 2 will entail a 100-hole drill
programme for a depth of 8,000m
focused on the best of the targets based on the assay results.
Having explored less than 20% of Monte Muambe, the Company will
also continue to identify additional targets on the remaining part
of the intrusion.
In Malawi, the Company is
undertaking preparation work at the Chambe Rare Earths Project,
ahead of commencing Phase 1 drilling in April 2022. The Company is currently working to
develop its community and environmental relations and part of this
will be a tree planting exercise, where the Company and its local
joint venture partner will plant 16,000 tree saplings, in
conjunction with the villages around the licence area, in
March 2022.
Altona’s plans for 2022 will see these two assets continue to be
developed in a phased, risk-mitigated and capital efficient
approach, commensurate with the Board’s strategy of developing
assets to the Bankable Feasibility Study (“BFS”) stage. Then,
depending on the specific economics of each asset, the longer-term
plan is to ascribe value to the assets through production or
through other options. This hybrid strategy ensures that the
Company will extract maximum value for its shareholders from each
asset, whilst retaining the flexibility to redeploy profits from
one asset into new, more lucrative opportunities which arise.
Finally, the Company is currently reviewing its next REE
acquisition, which it hopes to complete in the first half of
2022.
Rare earths are currently among the most in-demand commodities,
with Rare Earth Oxide prices at an all-time high, due to the
rapidly increasing demand for Electric Vehicles and a whole array
of electrical products. The world’s governments “green” promises to
phase out production of combustion engine vehicles within the next
20-30 years ensures demand for REE will only increase over the next
20 years.
Further, there is an ongoing squeeze on global supply, with
China still being the dominant
power in the sector, controlling the processing of over 90% of all
rare earths supplies. The most recognised solution for this will be
to establish new long-term, alternative sources of these “critical”
metals and Africa is considered a
priority target due to its geology and mining infrastructure.
Christian Taylor-Wilkinson,
Chief Executive of Altona, commented, “We made major progress
in 2021, achieving all our targets and raising over £2 million. The
next steps will be to complete new phases of drilling to produce
maiden Resource Estimates at Monte Muambe and Chambe. We believe
the planned transition of our stock market listing from Aquis to
the London Stock Exchange, will provide access to the levels of
funding we will need to take these projects to BFS within the next
few years.”
-ends-
For further information, please visit www.altonaRE.com or
contact:
Altona Rare Earths Plc
Christian Taylor-Wilkinson, Chief
Executive
+44 (0) 7795 168 157
Martin Wood, Non-Executive
Chairman
+44 (0) 7880 787 080
Alfred Henry Corporate Finance Ltd (AQSE Corporate
Adviser )
Jon Isaacs / Nick
Michaels
+44 (0) 20 3772 0021
Optiva Securities (Broker)
Daniel
Ingram
+44 (0) 20 3411 1882
Company Information
Altona Rare Earths Plc is a mining exploration company focused
on the evaluation, development and extraction of Rare Earth Element
(REE) metals in Africa. It owns two REE mining projects in
Africa; the Monte Muambe Project,
a significant Light REE mining project in southwest Mozambique, where exploration work commenced
on 1 October 2021 and the Chambe Rare
Earths Project, a Heavy REE mining project in Southern Malawi, which it acquired on
21 October 2021.