TIDMATN
RNS Number : 0029R
Aterian PLC
24 October 2023
24 October 2023
Operational Update:
Rio Tinto Earn-In JV Update, Rwanda
Aterian Plc
(" Aterian " or the " Company")
Aterian Plc (LSE: ATN) , the critical and strategic
metal-focused exploration and development company, has received
notice from Rio Tinto Mining and Exploration Ltd ( " Rio Tinto" )
that the Company has met the required conditions to initiate the
lithium-focused Earn-In Investment and Joint Venture Agreement ( "
Agreement") in the Republic of Rwanda ("Rwanda"). Rio Tinto has
confirmed that all the conditions subsequent to the Agreement have
been met and the joint venture is now effective.
During the period since the Company announced the joint venture
on 1 August 2023, Rio Tinto has been active in Rwanda, establishing
its operational infrastructure and recently commenced field
operations on the HCK Project. Additionally, Aterian local
subsidiary, Kinunga Mining Limited, has been actively working on
the project prerequisites, including human resource training and
staff secondment, in support of the preparatory work necessary to
launch the exploration programme.
Charles Bray, Chairman of Aterian, commented:
"Since announcing our lithium joint venture with Rio Tinto, much
progress has been made in preparation for the exploration at the
HCK site in southern Rwanda. We thank and are grateful to the
Rwanda Mines, Petroleum and Gas Board, as well as the regional and
local governments, for their active communication and
professionalism, allowing us to complete the joint venture. We can
now begin exploring the LCT pegmatite swarm and the 19 identified
zones across the 2,750-hectare HCK site and collecting valuable
data on the lithium, tantalum, tin, and niobium to generate
preliminary resource estimates. It is our intention to determine
the nature and scale of the lithium and by-product potential across
this project area. We look forward to updating the market on our
exploration efforts."
Summary Highlights of the Agreement:
-- Rio Tinto has the option to invest US$7.5 million in two
stages to earn up to a 75% interest in the HCK Licence to explore
for minerals vital for a successful energy transition to renewable
energy.
o Stage 1 exploration expenditures of US$3 million over a period
of up to two years to earn a 51% interest in the Licence.
o Stage 2 exploration expenditures of US$4.5 million over a
follow-on period of up to three years to earn a further 24%
interest in the Licence, taking Rio Tinto's interest in the Licence
to 75%.
-- Cash consideration of US$300,000 over the two stages.
-- A 2% capped Net smelter return ("NSR") granted over the Project (capped at US$50 million).
-- Rio Tinto has the option to add Aterian's two other Rwandan
projects, pending licence approval with the authorities.
-- The Project has 19 identified pegmatite zones over its
2,750-hectare Licence in southern Rwanda.
The HCK Project
Aterian has a Joint Venture Agreement and Operating Agreement
with HCK Mining Company Limited, a private non-related Rwandan
registered entity over a 2,750-hectare exploration licence in
southern Rwanda. Aterian holds a 70% interest in Kinunga Mining
Limited, which holds the licence for the Project, with HCK Mining
Company Limited holding a 30% interest. The licence is located
approximately 65 km southwest of Kigali and 20 km northwest of
Huye, within the Southern Province, straddling the Nyanza and Huye
District boundaries.
- ENDS -
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310
(as amended).
For further information, please visit the Company's website:
www.aterianplc.com or contact:
Aterian Plc:
Charles Bray, Executive Chairman -
charles.bray@aterianplc.com
Simon Rollason, Director - simon.rollason@aterianplc.com
Financial Adviser and Broker:
Novum Securities Limited
David Coffman / George Duxberry
Tel: +44 (0)207 399 9400
Financial PR:
Bald Voodoo - ben@baldvoodoo.com
Ben Kilbey
Tel: +44 (0)7811 209 344
Notes to Editors:
About Aterian plc
www.aterianplc.com
Aterian plc is an LSE-listed exploration and development company
with a diversified African portfolio of critical and strategic
metals/minerals projects.
Aterian plc is actively seeking to acquire and develop new
critical and strategic metal resources to strengthen its existing
asset base whilst supporting ethical and sustainable supply chains
as the world transitions to a sustainable, renewable future. The
supply of these metals is vital for the development of the
renewable energy, automotive and electronic manufacturing sectors
that are playing an increasing role in reducing carbon emissions
and meeting climate ambitions globally.
The Company recently entered into a joint venture agreement with
Rio Tinto Mining and Exploration Limited for Rio Tinto to earn into
the HCK project in southern Rwanda and holds two further
partnerships in Rwanda exploring and developing
lithium-tantalum-niobium-tin mining operations. Aterian currently
holds a portfolio of 17 copper-silver and base metal projects with
a project area of 897 km(2) in the Kingdom of Morocco.
The Company's strategy is to seek new exploration and production
opportunities across the African continent and to develop new
sources of strategic and critical mineral assets for exploration,
development, and trading.
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END
JVEUOAOROVURUAA
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