Altus’ shares rise on ‘transformative’ deal with La Mancha
The LSE share price of Aim- and TSX-V-listed Altus Strategies rose by nearly 27% on Tuesday morning after it announced that private gold investment company La Mancha planned to buy a stake in the company.
Altus and La Mancha have executed a nonbinding letter of intent (LoI) for La Mancha to subscribe for 124.2-million Altus shares at C$0.09 a share, for aggregate gross proceeds of about C$11.1-million.
Altus CEO Steven Poulton said the transaction would “prove transformative for Altus”, and would provide the capital and expertise to fast-track its project and royalty generation activities, as well as unlock new external growth opportunities.
The deal, which includes a two-year equity lock up, also represents a strong endorsement of the Altus team, portfolio and business model, he added.
La Mancha CEO Karim Nasr, meanwhile, commented that the proposed investment in Altus represented the company’s first external investment in the mining exploration space.
“[Our] transformational investment will enable the company to build on those strong foundations to develop Altus into a pre-eminent exploration and royalties company in Africa," he added.
In addition to the proposed La Mancha investment, Altus also announced a proposed nonbrokered private placement of up to 58.5-million shares at a price of C$0.09 a share, to raise gross proceeds of up to C$5.2-million.
The placement will be launched simultaneously with the entry into binding transaction documentation relating to the La Mancha investment but will not be conditional on the La Mancha investment, and is expected to complete shortly after launch.
The La Mancha investment is expected to be completed in January, subject to the receipt of all relevant shareholder and regulatory approvals.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation