Amala Foods PLC on Friday said that it has terminated a proposed transaction with Terra Rara UK Ltd, after identifying administrative issues with the company’s mining assets through due diligence.

The Jersey-based food technology firm is now pursuing the return of $125,000 due from Terra Rara, which is seeking to develop assets in two African countries where the due diligence is ‘lengthy and complex’.

In other news, Amala Foods has raised new funds of £405,000 through the subscription of convertible loan notes. The loan notes carry zero interest, and will convert at re-admission upon a reverse takeover at a 50% discount to the re-admission price.

A director, Aidan Bishop, has also subscribed to £40,000 of the notes.

The company now expects to publish its annual financial report at the end of this month. It said that the delays have been ‘largely due to the busy season’, as well as resourcing challenges faced by its auditors.

Upon publication, Amala will apply to restore its shares to trading.

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