10th Sep 2021 09:37
(Alliance News) - Altona Rare Earths PLC on Friday said its has raised GBP1.3 million through a significantly oversubscribed placing.
The Africa-focused miner will issue 8.8 million shares at a price of 14 pence each, reflecting a 7% premium to Altona's closing price on Thursday of 13p, and a separate 83,333 shares in lieu of fees to a service provider.
Shares in Altona Rare Earths were up 12% at 14.6p on Friday in London.
"Demand for this placing significantly exceeded our expectations. These additional funds will enable us to both accelerate and expand our activities, to find and develop valuable rare earth mining assets in Africa, of which we already have one underway and several others under consideration," said Chief Executive Officer Christian Taylor-Wilkinson.
Also on Friday, Altona said it has started groundwork operations at the Monte Muambe project in Mozambique at the end of August, ahead of schedule. As a result, exploration drilling is expected to stat before the end of September.
In addition, the company is in the final phase for applying to list on the London Stock Exchange.
Altona now has 30.0 million shares issued overall.
By Dayo Laniyan; [email protected]
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