(Sharecast News) - Rare earth elements-focussed mining exploration company Altona Energy updated the market on Friday, saying it was "moving forward on all fronts" with its new business strategy.
The AIM-traded firm said that in Malawi, it signed heads of agreement with Akatswiri Mineral Resources on 1 September, to acquire up to 75% of the Chambe Rare Earth project in Southern Malawi.
It said the heads of agreement were not legally binding, but formed the basis of progressing towards a legally-binding agreement if certain conditions were fulfilled by both parties.
Those conditions included a successful fundraise by Altona, and the completion of due diligence by Altona on Akatswiri Mineral Resources.
"Following the recent general election in Malawi and a change in law regarding the naming of mineral licences, which has caused a backlog of permit approvals, the company is waiting on the granting of exploration licence APL 0153, which it hopes will happen in the coming weeks, when the Malawian Mining Department holds its next formal meeting," the board said in its statement.
It said its partner in Malawi, Akatswiri Mineral Resources, had been working closely with the government and local communities since March, and had now filed all necessary reports to demonstrate the joint venture's ability to develop the project in a "timely and sensitive" manner, once the permit was issued.
"These reports include an environmental social management plan, an exploration plan and budget, as well as conducting ongoing stakeholder consultation meetings with the community and district council of Mulanje."
The directors said the formalisation of Hilton Banda's appointment to the board of Altona was also ongoing, saying it expected Banda would become a director in conjunction with the granting of the exploration licence for Chambe.
Banda is the chief executive officer of Akatswiri Mineral Resources, and a "highly experienced" qualified geologist, according to the board.
"The company is now in advanced discussions with two other rare earth elements projects in different stable African jurisdictions, and the board is confident that it will sign heads of agreement with at least one of these companies within the next 30 days.
"These projects are both carbonatite-bearing rare earth elements deposits which have had extensive exploration work, including diamond drilling, carried out over the past 20 years by previous owners which warrants further exploration."
Finally, the board said the proposed capital raise, as announced on 17 July, would be launched via the NR Private Market investor platform once the exploration licence has been granted in Malawi, or the company signs heads of agreement with one of the other companies it is negotiating with.
"The company will apply to AQSE to restore trading in the shares following a successful fund raise," the board added.
5 Nov 2015 12:10