Altona Energy extends current fundraise due to demand

Rare earth elements-focussed mining company Altona Energy has agreed to extend the current fundraise until 11 November, it announced on Tuesday, due to ongoing investor interest.

The AIM-traded firm was looking to raise up to £0.5m at a price of 6.5p per share, and would also issue warrants at 12p , with one warrant being issued for every two Altona shares subscribed for, with an expiration date of 30 March 2023.

It said the capital would be primarily used to start an initial exploration drilling programme on two of the African rare earth projects it was in the process of acquiring.

“These acquisitions will be paid for using Altona ordinary shares, thereby freeing up cash for operational activities,” the board said in its statement.

“The funds will also be used to complete final legal due diligence on the acquisitions and for working capital purposes.

“The company is expectant that it will shortly be in position to acquire a third rare earth mining project, also in Africa, in which it is in advanced negotiations with the current owner.”