Altona Rare Earths plc has raised £2 million in a placing and subscription ahead of starting to trade on the main market of the London Stock Exchange.
The company raised £1,677,300 via a placing and £322,700 through a subscription with the issue of 40 million new ordinary shares each at 5 pence.
Altona said it would also issue 4.9 million fee shares to “various advisers and directors”.
Following the issue of a total 44,918,200 million shares, the company’s enlarged share capital and total voting rights will comprise 82,403,199. Altona has no shares held in treasury.
DIRECTORS DEALINGS
Directors took part in the fundraise and agreed to take part of their past salaries in ordinary shares at the issue price.
Outgoing chief executive officer Christian Taylor-Wilkinson participated in the placing for 1.2m shares, with 750,000 shares paid in lieu of salaries and fees, taking his total holding is 3,862,371 shares representing 4.69% on the company’s admission.
Non-executive director Martin Wood participated for 500,000 shares, with 350,000 shares in lieu of salaries and fees, taking his total to 1,388,462 (1.68%).
Proposed CEO Cedric Simonet took no part in the placing, received 574,200 shares in lieu of salaries and fees, taking his total holding to 855,711 (1.04%).
Proposed director and chief financial officer Louise Adrian participated for 300,000 shares (0.36%).
USES
The funds will be help complete Altona’s inaugural JORC compliant mineral resource estimate and a scoping study due in August 2023 for the Monte Muambe project in northwest Mozambique.
This will enable the company to increase its holding in project owner Monte Muambe Mining Lda (100%) from 20% to 51%.
Altona added it would begin its Phase III pre-feasibility study activities on site in July 2023.
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