Altus Sign Strategic Investment

Altus Strategies, the Africa focused project and royalty generator, announces that further to the Company’s announcement, it has entered into a Strategic Investment Agreement with La Mancha Holdings SÀRL, a Luxembourg-incorporated private gold investment company. Under the Agreement and subject to regulatory and Altus shareholder approval, La Mancha will subscribe.

 

Strategic Investment Agreement, conditional strategic investment from La Mancha of approximately C$11.2 million or say approximately US$8.4 million. La Mancha Investment occurring at an approximate 20% premium to the closing market price and an approximate 30% premium to the Company’s 30 day volume weighted average price, in each case on the TSX Venture Exchange, being the last trading day prior to the announcement of the Letter of Intent between La Mancha and Altus.

 

La Mancha is a private gold mining and investment company with a focus on Africa, Proceeds from La Mancha Investment to accelerate project and royalty generation activities numerous strong synergies for Altus from a long term strategic relationship with La Mancha.

 

The La Mancha Investment requires, (i) a waiver by the UK Panel on Takeovers and Mergers on Takeovers and Mergers at a general meeting of the shareholders in respect of the obligation of La Mancha to make a mandatory offer in connection with the issue of the La Mancha Shares pursuant to the La Mancha Investment. (ii) Approval of the issuance of the La Mancha Shares by Disinterested Shareholders.

 

Steven Poulton, Chief executive of Altus, commented: “We are delighted to have entered into a Strategic Investment Agreements 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.”

 

  • Altus Sign Strategic Investment