In a business update released today, Altona Rare Earths (ANR ) told investors that it has made “major progress” in 2021, achieving all targets and raising over £2m over the year.

The African-focused rare earths company outlined that it is currently progressing two potentially significant Rare Earth Elements (“REE”) mining projects located in Africa. 

The company’s focus during 2022 will be to successfully execute the asset development plans at both sites with an initial focus on proving the level and types of REE present.

In 2021, Altona completed acquisition agreements on two sites: a light REE project in Mozambique and a heavy REE project in Malawi. The company said the two deals were concluded after careful due diligence and their evaluation as a prospect for REE mining.

By acquiring one light and one heavy REE project the Company believes it has potentially positioned itself in a unique position across the rare earths supply chain, it explained.

In Mozambique, Altona Rare Earths commenced a Phase 1 exploration drilling programme at the Monte Muambe Project in October 2021 and subsequently completed the drilling of 43 holes totaling 3,131m (across six targets within the licence area) in late November 2021. 

The RC chips and core samples from this drilling programme are currently undergoing assay with Intertek’s Australian-based lab and results are now expected by the end of March 2022. 

Meanwhile, Phase 2 at Monte Muambe is expected to start following the end of the rainy season in April 2022. The work plan and budget for this will entail a 100-hole drill programme for a depth of 8,000m focused on the best of the targets based on the assay results, it noted.

Having explored less than 20% of the overall Monte Muambe project, the Company noted that it will also continue to identify additional targets on the remaining part of the intrusion.

Elsewhere in Malawi, the Company is currently undertaking preparation work at the Chambe Rare Earths Project, ahead of the commencement of a Phase 1 drilling in April 2022. 

Altona is working to develop its community and environmental relations and part of this will be a tree planting exercise, where the Company and its local joint venture partner will plant 16,000 tree saplings, in conjunction with the villages around the licence area, in March 2022.

Altona outlined that its plans for 2022 will see these two assets continue to be developed in ‘a phased, risk-mitigated and capital efficient approach,’ commensurate with the Board’s strategy of developing assets to the Bankable Feasibility Study (“BFS”) stage, it explained.

‘Then, depending on the specific economics of each asset, the longer-term plan is to ascribe value to the assets through production or through other options,’ the company added. 

Altona is currently reviewing its next REE acquisition, which it hopes to complete in 1H22.

Addressing its shareholders, the company outlined how rare earths are currently among the most in-demand commodities, with Rare Earth Oxide prices at an all-time high, due to the rapidly increasing demand for Electric Vehicles and a whole array of electrical products. 

Altona expects the demand for REE to increase over the next 20 years as more governments around the word commit to phase out combustion engine vehicles over the next few decades.

It added that there is an ongoing squeeze on global supply, with China still being the dominant power in the sector that controls the processing of over 90% of all rare earths supplies.

In response to this, the company highlighted that the most recognised solution for this will be to establish ‘new long-term, alternative sources of these “critical” metals’. It added that it believes Africa is considered a priority target due to its geology and mining infrastructure.

Christian Taylor-Wilkinson, CEO of Altona, commented, “We made major progress in 2021, achieving all our targets and raising over £2 million. The next steps will be to complete new phases of drilling to produce maiden Resource Estimates at Monte Muambe and Chambe. ”

Looking ahead, Altona Rare Earths stated that it believes its planned transition of its stock market listing from Aquis to the London Stock Exchange, will provide access to the greater levels of funding that it will need to take these projects to BFS within the next few years.

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