Extension of Loan Facility from La Mancha

(TheNewswire)

14 February 2022 – TheNewswire - Altus Strategies Plc (AIM:ALS), (TSXV:ALTS), (OTC:ALTUF) announces that on 12 February 2022 the Company and La Mancha Fund SCSp (“La Mancha”) agreed to extend the repayment date (“Repayment Date") of the acquisition loan facility (“Facility”) between La Mancha and the Company (see Company announcement of 17 August 2021) maturing on 17 February 2022. The Repayment Date has now been extended to 30 June 2022 (“Extension”) and the annualised interest rate of the Facility has been increased from 9% plus the United States Dollar (“USD”) London Inter-bank Offered Rate (“LIBOR”) to 10% plus USD LIBOR. All other provisions of the Facility remain unchanged.

Steven Poulton, Chief Executive of Altus, commented:

“Altus has received a number of attractive proposals from recognised lenders to refinance the existing Facility that we have with La Mancha, our largest shareholder. The level of interest we have received reflects the high quality of our income-generating royalty portfolio which we have been aggressively growing in the last twelve months. However, Altus is assessing a number of further potential royalty and other opportunities and believe the flexibility derived from extending the existing Facility will have value. We are pleased that La Mancha agree with our assessment and have extended the Facility to 30 June 2022. I look forward to providing further updates in due course.”

La Mancha Facility

La Mancha is the Company’s largest shareholder with a 35.08% interest and is considered a "related party" pursuant to the AIM Rules for Companies as well as Canadian Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Accordingly, the Extension constitutes a related party transaction pursuant to AIM Rule 13 and MI 61-101. The Company believes it is exempt from the requirements under MI 61-101 as the Extension was agreed with reasonable commercial terms between the Company and La Mancha as if it were on an arm’s length basis and as the Facility is not convertible or repayable into equity of the Company.

The independent directors of Altus, being the directors other than Mr Karim Nasr (being Managing Director and Chief Executive Officer of La Mancha), having consulted with the Company's Nominated Adviser, SP Angel Corporate Finance LLP, consider that the terms of the Extension from La Mancha are fair and reasonable insofar as Altus’s shareholders are concerned. Mr Nasr, a Non-Executive Director of Altus, abstained from the board decision approving the Extension.

The Extension is conditional on the approval of the TSX-V. A material change report will be filed with the applicable Canadian securities commissions, however, there was insufficient time to file it at least 21 days before the Extension was agreed upon.

For further information you are invited to visit the Company’s website www.altus-strategies.com or contact:

About Altus Strategies Plc

Altus Strategies (AIM: ALS, TSX-V: ALTS & OTCQX: ALTUF) is a mining royalty company generating a diversified and precious metal focused portfolio of assets. The Company’s differentiated approach of generating royalties on its own discoveries in Africa and acquiring royalties globally through financings and acquisitions with third parties, has attracted key institutional investor backing. The Company engages constructively with all stakeholders, working diligently to minimise its environmental impact and to promote positive economic and social outcomes in the communities where it operates. For further information, please visit www.altus-strategies.com.

TSX Venture Exchange Disclaimer

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organisation of Canada accepts responsibility for the adequacy or accuracy of this release.

Market Abuse Regulation Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR. Upon publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.

**END**

Copyright (c) 2022 TheNewswire - All rights reserved.