U.S. Support Strengthens Altona’s Monte Muambe Rare Earths Strategy in Mozambique

Altona Rare Earths (LSE:REE) has received in-principle backing from the U.S. Trade and Development Agency for its Monte Muambe rare earths project in Mozambique, highlighting the project’s strategic relevance to global critical minerals supply chains. The support, expected to be formalised through a grant agreement, is intended to help define both the technical and financial framework required to advance production of rare earth elements used in permanent magnets, defence applications, and energy transition technologies.

The USTDA’s involvement aligns with broader U.S. efforts to diversify and secure critical minerals supply, positioning Altona as a potential alternative source of rare earths and fluorspar outside established markets. In parallel, the company is awaiting assay results from a recent drilling programme targeting fluorspar and gallium at Monte Muambe. Altona believes the results could underpin a standalone, commercially meaningful fluorspar development, further enhancing the project’s strategic and industrial appeal.

Despite the strategic progress, the company’s overall outlook remains constrained by its early-stage financial profile, characterised by a lack of revenue, continued losses, ongoing cash burn, and rising leverage alongside declining equity. Technical indicators offer limited support, with some short-term strength above the 20- and 50-day moving averages offset by a weaker longer-term trend below the 100- and 200-day levels and a slightly negative MACD. Valuation metrics provide little downside protection given negative earnings and the absence of dividend visibility.

More about Altona Rare Earths

Altona Rare Earths is a London Main Market-listed exploration and development company focused on critical raw materials across Africa, including rare earths, fluorspar, gallium, copper, and silver. Its flagship Monte Muambe project in Mozambique hosts multi-commodity mineralisation under a 25-year mining licence, while the company also advances the Sesana copper-silver project in Botswana. At Monte Muambe, Altona has defined a maiden JORC resource for rare earths, is progressing scoping-level development studies, and is evaluating opportunities to fast-track acid-grade fluorspar production and potential gallium recovery from tailings.