London-listed Altona Rare Earths has raised a further £600 000 through the transfer and subsequent exercise of 40-million warrants, with the net proceeds to be used to repay outstanding debt of £600 000 to Tracarta.

This fundraise follows the successful £851 950 raise completed in August, the net proceeds of which are principally being used to advance the fluorspar scoping study at the Monte Muambe project, in Mozambique.

Drilling at Monte Muambe has already started and an operational update is anticipated to be released in the coming weeks.

Altona has also announced an extension to the remaining debt provider Catalyse Capital facility of £500 000 until October 30, 2026.

The company has agreed with Richard Jennings and Catalyse Capital an extension, on several terms.

These terms include a one-off reprofiling fee of 10%, for which the company intends to issue 3.3-million new ordinary shares following shareholder approval of their issuance at its next AGM.

Also, Altona has received notification from the lenders under both above-mentioned debt facilities that they have elected to receive the due interest of £132 000, accrued under the debt facility agreements dated June 27, 2024, in the form of ordinary shares.

Accordingly, the company will also issue 13.2-million new ordinary shares to satisfy the outstanding debt interest.

Altona has also appointed Zeus Capital as its corporate broker with immediate effect.

“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,” CEO Cédric Simonet says.

“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,” he adds.