- Mining company Altona Energy said it had signed a non-binding agreement to acquire a 70% stake in the Nankoma rare earth project in Uganda from Leadway.

The associated tenement covered an area of 67.5 square kilometres and was located around 50 kilometres east of Jinja, which lay 130 kilometres east of Kampala in Eastern Uganda.

Should a binding agreement be signed, Altona would be responsible for all agreed budgeted costs to complete a feasibility study on the establishment of commercial scale mining and processing operations.

Altona would pay a total of £725k to Leadway in Altona share across five tranches.

The payments would be determined by the completion of various milestones, with the expectation that the final tranche of £175k would be paid within three years, on the completion of a pre-feasibility study.

Shares would be issued at a 10-day average market price at the date of the milestone completion.

The first share payment, due Monday, would be paid at the current suspended price of 9.5p and provided Altona with an exclusivity period until 30 November to complete its legal and technical due diligence on Leadway.

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