Altona Rare Earths PLC (LSE:REE) has conditionally raised £390,000 through a subscription of new shares at 1p each and £900,000 in debt through two loan agreements of £600,000 and £300,000 respectively.
Shares were issued at almost no discount to last night’s closing price with £900,000 provided by Tracarta, a privately held investment company, comprising £300,000 of the subscription and £600,000 as a loan.
Net proceeds will be used at the Monte Muambe rare earth project to support ongoing efforts to secure a strategic investor for the project and to complete the Sesana and Kabompo South copper projects acquisitions.
The loan carries interest at 12%, matures in October 2025 and comes with 135 million warrants exercisable at 1.5p.
Holders of outstanding convertible loan notes have also agreed to change their conversion price to 1p a share with notices received to convert £333,000 worth.