(“Altona” or “the Company”)
MEMORANDUM OF UNDERSTANDING
Altona (AQSE: ANR.PL), a mining exploration company, announces that following a period of discussion, it has entered into a Memorandum of Understanding (“MoU”) with mining consultancy company, Akatswiri Mineral Resources (“Akatswiri”), to acquire a majority stake in a rare earth mining project in the
Akatswiri is currently the 100% owner of
The terms of the MoU state Altona will initially acquire a 51% holding in ARE, rising to 75% on certain project milestones being met. Akatswiri will remain a 25% shareholder. The consideration for the transaction will be Altona Energy ordinary shares.
Chambe is a large, ionic adsorption clay-hosted Rare Earth Elements (“REE”) project bearing appreciable quantities of critical heavy and light REEs, particularly Ytterbium, Dysprosium, Yttrium, Neodymium and Praseodymium. Extensive exploration work has been carried out on the site since
The expansion of new energy sectors and increases in the demand for electric vehicles is driving demand for neodymium, praseodymium and other “technology” metals which are used in permanent magnets, a key component in electric vehicle manufacturing. It has been widely reported that many companies are looking for alternative REE supplies outside
Both the Company and Akatswiri have commenced due diligence to examine the feasibility of the acquisition of ARE by Altona. However, until a formal agreement has been signed, the deal is conditional, and not binding on either the Company or Akatswiri. There can be no guarantee that the discussions in respect of the MoU signed with Akatswiri will be successful, however, the Board believes that this is a positive step towards the Company’s goal of acquiring a majority investment in a viable mining project.
The due diligence process is expected to take up to three months to complete and is dependent upon certain factors, including Akatswiri providing an up to date geological report which it expects to gain access to in due course. The report, it is understood, will form the key components of a Competent Persons Report (“CPR”), which the Company believes will be required ahead of a fund raise, which is a necessary element of the project’s success.
For further information, please visit www.altonaenergy.com or contact:
Altona Energy plc Christian Taylor-Wilkinson, Interim CEO +44 (0) 7795 168 157 Philip Sutherland, Non-Executive Director +61 (0)402 440 339 Alfred Henry Corporate Finance Ltd(Aquis Corporate Adviser) Jon Isaacs/ Nick Michaels+44 (0) 20 3772 0021 Leander (Financial PR) +44 (0) 7795 168 157
Altona is a mining exploration company focused on the evaluation, development and extraction of minerals.
The Company was admitted to trading on AIM on