Altus Strategies shareholders have approved all resolutions to effect the proposed strategic investment from mining investment firm La Mancha Holdings in the company and a five to one consolidation of the company’s share capital.
The mining project generator will issue more than 124 million new shares at a price of C$0.09 per share for a consideration of approximately C$11.2m ($8.4m USD) on 21 February 2020. On completion of the deal, La Mancha will own around 35.4% of the share capital of Altus Strategies and will have the ability to appoint two representatives to the company’s board of directors.
The company will also consolidate shares by way of one consolidated ordinary share for every five existing ordinary share. This is expected to be effective after the close of trading on 21 February.
The investment in Altus Strategies is La Mancha’s first external investment into the listed mineral exploration sector. Equity research analyst at SP Angel Sergey Raevskiy told Mining Technology this may set a trend for more capital being committed to early-stage exploration.
Altus Strategies CEO Steven Poulton said: “We are delighted that our shareholders have overwhelmingly approved the strategic investment by La Mancha, a pre-eminent Africa-focused mining investment group with a notable track record in deal selection and value creation.
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By GlobalData“The directors believe that this transaction will be transformative for Altus, providing the capital and expertise to fast track our project and royalty generation activities, as well as unlocking new external growth opportunities.
“The directors are of the view that the deal also represents a strong industry endorsement of the Altus team, portfolio and business model.”
Altus Strategies’ share price jumped by as much as 8% on the London Stock Exchange following the announcement.
