Altona Rare Earths strikes copper deal in Botswana

Shares in Altona Rare Earths (LSE: REE) gained more than a third on Tuesday after saying it had inked a deal to acquire the majority of a copper and silver asset in Botswana held by Ignate African Mining.

The option agreement would give Altona 85% of the Sesana copper-silver project in the heart of the Kalahari Copper Belt for US$110,000 in cash and US$250,000 worth of shares plus exploration and spending commitments, the company said. 

Recent airborne surveys have revealed promising geological formations for copper-silver mineralization spanning across the tenement, Altona said. Sesana is about 25 km from the Khoemacau underground copper-silver mine.

Initial exploration will consist of a combination of geochemical and geophysical work including soil sampling associated with ionic leach assaying, a technique particularly suitable for the copper belt, the company said. 

The Sesana acquisition is in line with the company’s diversification strategy, CEO Cedric Simonet said. 

“This, and the recently acquired Kabompo South critical raw materials project in Zambia, is expected to generate news flow at a relatively low cost and will complement our flagship Monte Muambe rare earths project in Mozambique,” Simonet said.

Altona Rare Earths closed 36% higher at £1.53 on Tuesday in London after surging as much as 60%. It has a market value of £976,130 ($1.7 million). They’ve traded in a 52-week range of £1 to £7.40.