Altona Rare Earths commences new target generation programme in Africa
(ANR ) has commenced a new target generation programme across four countries - Mozambique, Angola, Tanzania and Uganda - with the intention of enhancing its strategy of becoming a developer of multiple African rare earths mining projects.
The rare earths exploration and mining firm said that by utilising its highly experienced on-the-ground presence in Africa and its UK stock market listing, the group has ‘a strong belief’ it will be able to secure new rare earths projects in the second half of the year.
The company noted that each of the four countries selected have been chosen by the board for their highly favourable geological context, including the presence of known rare earth deposits, and their conducive mining, investment, political and regulatory environment.
The Company said it will approach its new initiative in two ways: firstly, it will assess existing projects where rare earth deposits have been reported - working with the current owner through a JV agreement, should it believe any project meets the board's rigorous criteria.
Secondly, Altona will also apply for fresh Prospecting Licences under its own name, should the target generation exercise identify rare earths potential in, as yet, unregistered areas.
Altona stated that it is already in the process of establishing a presence in these countries by registering subsidiary companies, the first step to applying for a Prospecting Licence.
Meanwhile, in a business update, the company told investors that it has started to identify potential Rare Earth Elements ("REE") opportunities and conduct preliminary evaluations.
To date, Altona has three acquisition contracts under negotiation, where it is seeking to acquire majority interests in rare earths projects. It said it expects these to increase its reputation as a professional player with the necessary experience to develop REE mining projects spreads while it added that it has received more "approaches" from mine owners.
Altona is now in the final phase of contract negotiation with Ussokoti Investimentos for the acquisition of the Monte Muambe Rare Earths Project in Mozambique where it has completed its legal and technical due diligence ahead of schedule and commissioned the preparation of a CPR on this ‘potentially substantial carbonatite mining asset,’ it noted.
In Uganda, Altona awaits assay results of soil samples taken from the Nankoma Rare Earths Project to provide guidance to the board in its decision to proceed with the acquisition.
In Malawi, Altona is working under a non-binding high-level MoU which allows it to validate this potential opportunity and negotiate appropriate commercial terms. It said this work is progressing and it expects to reach a decision on whether to proceed or not by August.
Altona highlighted to investors that it is in the process of listing on the Official List of the LSE, via a Standard Listing, which it said expected to be achieved by September 2021.
The company describes the listing as a “strategic move” that will enable interested parties to make an investment in Altona as it starts to progress its projects to the next stage.
On listing, Altona said it will be looking to raise capital to provide sufficient headroom for a period of 12 months, based on its current strategy of developing at least three assets.
Reasons to ANR
Altona Rare Earths is an Aquis-listed mining exploration company which is focused on the evaluation, rapid development and extraction of Rare Earth Element (REE) metals in Africa.
During the year to 31 June 2020, Altona closed a significant 15-year chapter on its Australian coal exploration activities and opened the door onto its new Rare Earth Metals mining strategy, which it believes “has far greater relevance for the world in the 21st Century.”
The past two years has seen a major global shift in the mind-set of rare earth metals end-users, these being primarily the manufacturers of, inter alia, high-strength permanent magnets for the electric vehicle market, military hardware and green power sectors.
Presently, China controls between 90-95% of the supply chain and crucially, also controls the refining and processing sectors, creating a worldwide bottleneck. It also controls more than 70% of EV battery manufacturing, which means a rise in cost of vehicles due to inflated REE prices could cause a significant delay to one of the world's major "Green Solutions".
Global governments are becoming increasingly aware that to increase the numbers of cars on the road, vehicles must be priced suitably. Since there are no viable alternatives to provide the huge quantities of the technology metals, REE mining firms are turning to Africa.
In theory, the company stated that rare earths mining companies in Africa could develop and start supplying Technology Metals to the world's green industries in under three years.
The Company believes it is now poised at the juncture of a significant opportunity within the rare earth metals sector which the group hopes to capitalise during this year and beyond.
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