Altus signs £6.5 million strategic investment agreement with La Mancha

LONDON: Altus Strategies Plc entered into a £6.5 million Strategic Investment Agreement with La Mancha Holdings, a Luxembourg-incorporated private gold investment company

Altus is a London and Toronto listed project and royalty generator in the mining sector with a focus on Africa.

Under the Agreement and subject to regulatory and Altus shareholder approval, La Mancha will subscribe for 124,229,389 new ordinary shares in Altus at a price of approximately £0.052 per share, for aggregate gross proceeds of approximately £6.5 million.

Steven Poulton, Chief executive of Altus, commented: “We are delighted to have entered into a Strategic Investment Agreement with La Mancha, a pre-eminent Africa-focused mining investment group with an outstanding track record in deal selection and value creation. We expect this transaction will prove 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 deal, which includes a two year equity lock up, also represents a strong endorsement of the Altus team, portfolio and business model. Independent to the La Mancha Investment, Altus intends to undertake a non-brokered private placement with existing and new investors, at the same price as the proposed investment by La Mancha. We look forward to updating shareholders on our progress with these transactions.”

Karim Nasr, Chief Executive of La Mancha, commented: “Our proposed investment in Altus represents the first external investment of La Mancha in the mining exploration space. Throughout our due diligence exercise, we were impressed by the quality of management, by the disciplined investment process and by the quality of the Company’s existing projects. Our transformational investment will enable the Company to build on those strong foundations to develop Altus into a pre-eminent exploration and royalties’ company in Africa.”

Separate to and not conditional on the proposed La Mancha investment, the Company is conducting a proposed non-brokered private placement of up to 58,500,000 new ordinary shares in the Company to selected institutional or accredited investors to raise aggregate gross proceeds of up to £3.1 million including participation by directors of the Company subscribing for approximately 5,193,372 placement shares in aggregate.

The Company will use the net proceeds of the Placement to fund project generation activities across its portfolio of projects, for generating and acquiring new project acquisitions, accrued expenses and for working capital purposes.

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