RE: Main Listing3 Aug 2022 02:54
Extract from Altona to Shareholders on Monday
I wrote to you back in May when we launched the fund raise to allow us to list on the LSE – the amount we have to raise to complete this transaction is set by our 12 month working capital needs and the frustration for us is that the FCA won’t allow us to raise this is two tranches – ie, what we need for immediate work and then return for more capital in 6 months’ time.
Whilst raising capital has been a simple procedure for Altona over the past 2 years, we launched the IPO raise right at the start of an unprecedented European crisis (!) and to date, we have committed investments of perhaps 60% of what we require. The capital markets are very tough at present and are likely to remain so until 2023 and therefore we have reduced our 12 month spend to match these economic changes, including a 50% reduction in Director’s salaries.
Crucially, our work at Monte Muambe remains on track, operationally and within budget, and the project is surpassing our initial expectations as to size and grade.
So, after taking advice from our broker, we are today relaunching the placing - the placing price will remain at 8p, which offers a small discount to the market price - but we are also going to issue a full warrant also at 8p, which will carry a 12 month expiry date.
We will keep the placing open for the next two weeks, so we can aim to finalise the LSE listing in early September. Subscribing investors will not need to pay for shares until the end of August.
I have attached an investment summary which provides an update on Altona’s rare earths mining activity at Monte Muambe in Mozambique – as we have started Phase 2 drilling, we now see MM becoming one of the highest-grade carbonatite REE projects in Africa, with average TREO grades higher than our UK contemporaries for a similar geological asset.
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