Altus Strategies: Results of £19.8m funraise

14th December 2021

Results of £19.8 million / US$26.1 million Fundraise

Altus Strategies Plc (AIM: ALS, TSX-V: ALTS, OTCQX: ALTUF) announces that further to its announcement yesterday it has closed a placing of new ordinary shares of nominal value of £0.05 each (“Ordinary Shares”) in the Company (the “Placing Shares”) to both existing and new institutional investors (the “Placing”) and has also undertaken a concurrent subscription by its major shareholder, La Mancha Fund SCSp (“La Mancha”), various Altus directors, officers and other investors (the “Subscription” and, with the Placing, being the “Fundraise”) of new Ordinary Shares (the “Subscription Shares” and, together with the Placing Shares, being the “Fundraise Shares”). The Placing Shares and the Subscription Shares will be issued at price of 53.5p / C$0.90 per Fundraise Share (“Fundraise Price”). The Placing was conducted by way of an accelerated bookbuild process (the “Bookbuild”) managed and undertaken by BMO Capital Markets Limited (“BMO”) as Sole Bookrunner and by Shard Capital Partners LLP (“Shard”) and SP Angel Corporate Finance LLP (“SP Angel”) as Lead Managers. Sprott Global Resource Investments, Ltd. acted as a finder in respect of some of the Subscription Shares and was paid a customary fee for such services.

Highlights:

  • Fundraise completed raising gross proceeds of £19.8 million (approximately US$26.1 million)
  • New Ordinary Shares to be issued at a price of 53.5p / C$0.90 per share
  • Altus welcomes new institutional investors to its register
  • La Mancha investment of £6.9 million to maintain its 35.08% strategic shareholding in Altus
  • Altus directors and officers participated in the Subscription investing approximately £0.5 million (approximately US$0.7 million)
  • Net proceeds of the Fundraise to be applied to the acquisition of up to 24 royalties from Newcrest Mining Limited (“Newcrest”) and for general corporate purposes
  • BMO acted as Sole Bookrunner and SP Angel & Shard as Lead Managers

Steve Poulton, Chief Executive of Altus, commented:

“We are delighted with the response to our Fundraise of gross proceeds of £19.8 million (approximately US$26.1 million) at a price of 53.5p / C$0.90 per share. On behalf of the board, I take this opportunity to welcome our new shareholders to the Company and to thank our existing shareholders, including La Mancha, for their continued strong support of the business. We also thank BMO as Sole Bookrunner and SP Angel and Shard Capital as Lead Managers on the Fundraise.

“The completion of this Fundraise allows Altus to rapidly move forward with the completion of our recently announced proposed acquisition of a diversified and gold focussed portfolio of up to 24 royalties from Newcrest for US$ 24 million. The portfolio includes royalties over two producing gold mines, one near-production gold mine as well as up to 15 development stage projects and six exploration stage projects, with 23 of the royalties being in Australia and one in Côte d’Ivoire.

“Altus is building a differentiated royalty business, where our shareholders not only have exposure to immediate and long term royalty cash flows from established operating mines globally, but also the substantial upside from our high impact ‘boots on the ground’ royalty creation strategies across Africa. I look forward to updating shareholders on the proposed royalty acquisition shortly.”

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