5th Nov 2019 14:26
(Alliance News) - Altus Strategies PLC on Tuesday said it has executed a non-binding letter of intent with La Mancha Holdings Sarl, under which La Mancha would invest up to CAD11.2 million and hold a 35% stake in Altus.
Shares in Altus were up 24% at 4.65 pence in London in afternoon trading.
Under the proposed deal, private gold investor La Mancha would subscribe for 124.2 million shares at CAD0.09 per share - around 5.3p sterling. Altus said the deal would generate aggregate gross proceeds of CAD11.2 million, around GBP6.6 million.
Altus is further planning to undertake a non-brokered private placement of as many as 58.5 million shares at that same CAD0.09 per share price, raising as much as CAD5.3 million. Altus's directors would participate in the placing to the tune of CAD640,000.
Both the La Mancha investment and the private placement would be used "to accelerate project and royalty generation activities" at Altus.
Altus is based in Oxfordshire and makes mineral discoveries across multiple licences, focusing on Africa. It then enters joint ventures and allows partners to earn interest by advancing projects to production.
Altus Chief Executive Steven Poulton said: "We are delighted to have received La Mancha's proposal for a strategic long-term investment in Altus. La Mancha is a pre-eminent Africa-focused mining investment group with an outstanding track record in deal selection and value creation. 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.
"The deal, which includes a two year equity lock up, also represents a strong endorsement of the Altus team, portfolio and business model. Independent to the La Mancha Investment, Altus intends to undertake a non-brokered private placement with existing and new investors, at the same price as the proposed investment by La Mancha. We look forward to updating shareholders on our progress with these transactions."
By Anna Farley; [email protected]
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