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Altona Rare Earths plc has announced it has entered into an agreement to acquire its first asset in the rare earth elements mining sector.
The company will acquire a 70% ownership of the Monte Muambe Rare Earths Project, upon entering into an agreement with Ussokoti Investimentos Limitada.
The project will be run through a Special Purpose Vehicle controlled by the Company, to which a licence will be transferred.
The acquisition is subject to government regulatory approval as is standard when transferring the ownership of a prospecting licence.
Ussokoti is the current holder of Prospecting Licence 7573L, which was granted in May 2017 and can be renewed for a further three years, on its expiry in May 2022.
The payments, in cash and shares, will be completed in three phases. Phase 1 is a cash payment of £40,000 and share payment of 1 million Altona shares.