Altona Rare Earths plc has secured a growth capital facility with Zeus Capital Ltd, to raise up to gross £2 million, to progress its Monte Muambe project in northwest Mozambique.
TVRs
The funds will add to Altona’s cash balance of £1m, as at 30 April, and also protect shareholders from “unnecessary dilution”.
Altona will draw down the facility in four separate tranches and issue to Zeus ordinary shares of one pence each for each tranche.
Zeus will sell the facility shares on behalf of, and for the company, in return for a broker fee.
On execution of the facility agreement on 6 April, Altona issued to Zeus a total of 12m ordinary shares for the first tranche, which is equal to approximately 2.62% of Altona’s enlarged issued share capital.
Following the issue of the first tranche shares, the company’s issued ordinary share capital will comprise 457,666,113 ordinary shares, with equal voting rights.
None of the shares is held in treasury.
The proceeds will further a fluorspar scoping study, gallium metallurgical testing and work on the heavy rare earths identified in mid-April at the Python target.