(Alliance News) - Altus Strategies PLC on Wednesday said its shareholders at a general meeting on Tuesday approved a resolution allowing La Mancha Holdings Sarl to invest around CAD11.2 million, around GBP6.5 million, into the company.
Altus stock was flat at 7.75 pence each on Wednesday afternoon in London.
The investment by La Mancha will see Altus issue 124.2 million shares to the private gold mining and investment company at a price of CAD0.09 each. The proceeds realised from the investment will be used to accelerate the company's project and royalty strategies in Africa.
Following completion - which is expected on Friday - La Mancha will hold a 35% stake in Altus and will have the ability to appoint two representatives to the company's board of directors.
"We are delighted that our shareholders have overwhelmingly approved the strategic investment by La Mancha. believe that this transaction will be transformative for Altus, providing the capital and expertise to fast track our project and royalty generation activities, as well as unlocking new external growth opportunities," said Altus Chief Executive Steven Poulton.
Shareholders of the mining royalty firm also approved a resolution proposing a share consolidation, turning every five shares into one share. The share reorganisation will be effective as at the close of business on Friday.
Following the share issue and consolidation, Altus' issued share capital will comprise of 350.5 million shares.
By Ife Taiwo; ifetaiwo@alliancenews.com
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