Fundraise to Repay Debt, Debt Extension and Appointment of Corporate Broker
Altona Rare Earths PLC (LON: REE), a resource exploration and development company focused on critical raw materials in Africa, is pleased to announce that it has raised a further gross amount of £600,000 through the exercise of existing warrants (the “Fundraise”). The net proceeds of the Fundraise will be used to repay outstanding debt of £600,000.
This Fundraise follows the successful £851,950 raise completed in August 2025, the net proceeds of which are principally being used to advance the fluorspar scoping study at Monte Muambe. Drilling at Monte Muambe has already commenced, and an operational update is anticipated to be released in the coming weeks.
The net proceeds raised via the Fundraise will be used to repay, in full, a single debt facility with Tracarta Limited. In addition, the Company is pleased to announce an extension to the remaining debt provider Catalyse Capital Limited (“CCL”) facility of £500,000 until 30 October 2026.
Details of the Fundraise
The Fundraise comprised the transfer and subsequent exercise of 40,000,000 warrants at an exercise price of 1.5 pence per share (the “Transferred Warrants”), over 40,000,000 ordinary shares of 1 pence each in the Company (“Ordinary Shares”) (the “Warrant Shares”).
Immediately prior to the exercise of warrants (the “Warrant Exercise”), the original warrant holder transferred their rights over the 40,000,000 Transferred Warrants to certain subscribers at nil cost, conditional upon their participation in the Subscription, in order to help to streamline the Company’s capital structure and facilitate the immediate repayment of £600,000 of outstanding debt.
Debt Extension and Interest Payments
The Company has agreed with Richard Jennings and CCL an extension to the remaining £500,000 of debt, on the following terms:
· extension to the maturity date until 30 October 2026;
· annualised interest rate of 12%;
· conversion right into Ordinary Shares at a price of 2.5 pence per share; and
· a one-off reprofiling fee of 10%, payable in shares at a price of 1.5 pence per share.
Accordingly, the Company intends to issue 3,333,333 new Ordinary Shares (the “Reprofiling Shares”) to satisfy the reprofiling fee following the approval of their issuance at the Company’s next annual general meeting of its shareholders.
In addition, the Company has received notification from the lenders under both above mentioned debt facilities (the “Lenders”) that they have elected to receive the due interest of £132,000, accrued under the Debt Facility Agreements dated 27 June 2024, in the form of Ordinary Shares. Accordingly, the Company will also issue 13,200,000 new Ordinary Shares (the “Interest Shares”) at a price of 1 penny per Interest Share, to satisfy the outstanding debt interest.
Appointment of Broker
The Company is also pleased to announce the appointment of Zeus Capital Limited as its corporate broker with immediate effect.
Admission and Total Voting Rights
The Warrant Shares and Interest Shares (together, the “New Shares”) are being issued from authorities granted to directors to issue new Ordinary Shares at the annual general meeting of the Company’s shareholders on 27 November 2024.
The Warrant Exercise Shares have previously been disclosed in a published prospectus. Accordingly, the Company is not required to publish a prospectus in order to issue these Shares.
Application is being made for the New Shares to be admitted to trading on the Main Market of the London Stock Exchange which is expected to be on or around 17 October 2025. Following this issue of 53,200,000 new Ordinary Shares, which will rank pari passu with the Company’s existing Ordinary Shares, the Company’s enlarged share capital and total voting rights in the Company will comprise 291,864,306. The Company has no shares held in Treasury. This figure of 291,864,306 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules.
Cédric Simonet, CEO of Altona, commented:
“I am delighted to see the strong interest Altona’s portfolio and value proposition generates in the investment community, and how it materialised in this additional funding which was an unsolicited approach by largely industry specialists. The proceeds enable us to significantly reduce the Company’s debt, with the remaining balance extended by a further year. With a cleaner balance sheet, this puts the Company in a much stronger position to capitalise on the results of its current workflows and to create long-term value for our shareholders. I would like to personally thank Richard Jennings and Catalyse Capital for their unwavering support of the company over a number of years now and continued belief in our assets. Without their assistance the future profile of Altona would look very different.”
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Altona Rare Earths Plc
Cédric Simonet, CEO +44 (0) 7778 866 108 (cs@altonare.com)
Louise Adrian, CFO +44 (0) 7721 492 922 (la@altonare.com)
