Mining exploration company Altona Rare Earths has raised £2-million through an oversubscribed placing of £1.72-million and a subscription of £279 200 through the issue of 40-million new ordinary shares.
The company announced on February 2 that it was seeking to raise £1.25-million in new capital.
The fundraise is conditional on, besides others, the proposed admission of its entire ordinary share capital to the official list and to trading on the LSE’s main market.
The intended use of funds will include the completion of Altona’s maiden Joint Ore Reserves Committee-compliant mineral resource estimate and a scoping study for the company’s flagship asset the Monte Muambe rare earths mining project in north-west Mozambique, which is expected to be published in May.
This will enable the company to increase its holding in Monte Muambe Mining, which owns 100% of Monte Muambe, from 20% to 51%. The funds will also be used to repay certain creditors and for general working capital purposes.