(Alliance News) - Altus Strategies PLC, a royalty and project generator in the mining sector, said Thursday it has entered into a strategic investment agreement with La Mancha Holdings Sarl, a private gold mining and investment company with a focus on Africa.
Under the agreement, La Mancha will subscribe for 124 million new Altus Strategies shares at 5.2 pence per share, for total of GBP6.5 million.
Altus Strategies shares were 4.9% down in London at 4.52p each on Thursday afternoon.
On completion, La Mancha will own around 35% of the enlarged issued share capital of Altus, if the share placement is fully subscribed, and approximately 40.5% if the placement does not exceed the directors' subscription.
Altus said proceeds from La Mancha investment will be used to accelerate project and royalty generation activities. The company also expects to receive numerous strong synergies from a long-term strategic relationship with La Mancha.
Steven Poulton, chief executive of Altus, said: "We expect this transaction will prove 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."
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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