Mining exploration company Altona Rare Earths, which is focused on the development of the Monte Muambe rare earth elements (REE) project, in Mozambique, has published its prospectus in respect of the proposed admission of its ordinary shares to allow it to begin trading on the LSE’s main market.
This admission is expected to become effective, with dealings in the company’s ordinary shares to begin on June 9 under the new ticker REE.
Further, the company in February announced its intention to raise £1.25-million in new capital. It has now confirmed that it has raised £2-million through an oversubscribed placing of about £1.68-million and a subscription of £322 700 through the issue of 40-million new ordinary shares at 5p a share.
The company will also issue 4.9-million fee shares to various advisers and directors.
Following this issue of 44.9-million shares, which will rank equally with the company's existing ordinary shares, Altona’s enlarged share capital and total voting rights in the company will comprise about 82.4-million. The company has no shares held in treasury.
The funds raised will be used to complete Altona's maiden Join Ore Reserves Committee-compliant mineral resource estimate and a scoping study for the Monte Muambe mining project, which is expected to be published in August.
This will enable Altona to increase its holding in Monte Muambe Mining – which owns 100% of the project – from 20% to 51%.
In line with Altona transitioning into a highly technical phase of exploration and development upon admission to the LSE, the company announced that CEO and director Christian Taylor-Wilkinson will step down but remain a full-time employee and shareholder, working hand-in-hand with the board across business and corporate development.
Altona COO Cedric Simonet will succeed Taylor-Wilkinson as CEO upon admission, after leading the company’s operational efforts in Mozambique for the past two years.
The board has said it believes his sector and technical experience, having worked as a mining executive in Africa and Europe, will provide the best direction and expertise for the company during the development phase.
In addition, new CFO and executive director Louise Adrian will take office upon admission. Adrian has been the company’s financial controller and company secretary for the past two years. The board believes her appointment will help strengthen financial governance.