Aim- and TSX-V-listed Altus Strategies on Wednesday said its shareholders had approved all resolutions to effect the proposed strategic investment by mining investment group La Mancha Holding in the company.
Altus will issue about 124-million new ordinary shares at a price of C$0.09 apiece to La Mancha, for a consideration of C$11-million, or $8.4-million, on or about February 21.
Upon completion of the transaction, La Mancha will become a cornerstone shareholder, owning about 35.4% of the enlarged share capital of Altus. La Mancha will also appoint two representatives to Altus’ board of directors.
Altus will then undertake a share consolidation exercise – by way of one consolidated ordinary share for every five existing ordinary shares. It is expected that the share consolidation will be effective after the close of trading in the company’s shares on February 21.
As a result of the share consolidation, the company will have about 70-million issued and outstanding consolidated ordinary shares. The company plans to make a further announcement in respect of the number of shares in issue as a result of fractional shares being rounded up following the share consolidation.
“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 record in deal selection and value creation.
“The directors believe 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,” said Altus CE Steven Poulton.
The directors believe the deal also represents a strong industry endorsement of the Altus team, portfolio and business model.
Altus owns, jointly and wholly, copper, gold, zinc, bauxite and iron-ore projects across African countries including Cameroon, Liberia, Ethiopia, Morocco, Ivory Coast and Mali.