Altona Rare Earths (LSE:REE) shares slumped, falling 16.1% to 3.1p after the company signed a £2m growth facility with Zeus Capital and issued 12m initial tranche shares under a block listing.
The London Main Market‑listed exploration and development company focused on critical raw materials in Africa said the proceeds are intended to bolster its cash balance (c.£1m at 30 April), complete the fluorspar scoping study, advance gallium metallurgical test work and heavy rare earths workstreams from the Monte Muambe MRE, and support general working capital and its diversification strategy.
The 12m Initial Tranche Shares represent approximately 2.62% of the company's issued share capital as enlarged and increase total issued shares to 457.67m, with all shares fully paid and ranking pari passu.
The Facility can be drawn in up to four tranches, with Zeus selling each tranche's shares on behalf of the company at not less than the market bid price over the first three months, and a broker fee payable from gross proceeds; unsold shares at a tranche end may be considered for buyback subject to shareholder approval and the company may veto further drawdowns.
The Initial Tranche Shares are expected to be admitted to trading at 8:00 a.m. on or around 6 May.
Net proceeds from each tranche will be paid to the company and announced on completion.
