REG - Aterian PLC - Operational Update: Rio Tinto Earn-In JV Update

AterianAnnouncement

10/01/2024 07:00

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RNS Number : 1388Z  Aterian PLC  10 January 2024

10 January 2024

 

Operational Update:

Rio Tinto Earn-In JV Update, Rwanda

 

Aterian Plc

("Aterian" or the "Company")

 

Aterian Plc (LSE: ATN), the critical metal-focused exploration and development
company, is pleased to announce a positive update of field activities being
undertaken by Rio Tinto Mining and Exploration Ltd ("Rio Tinto") on the
lithium-focused Earn-In Investment and Joint Venture Agreement ("Agreement")
in the Republic of Rwanda ("Rwanda").

 

Aterian's local subsidiary, Kinunga Mining Limited, is engaged in supporting
Rio Tinto in staging the necessary equipment to establish a maiden drill
program over the licence area in 2024.

 

Sandy Walker, the Programme Manager, Rwanda for Rio Tinto:

 

"Rio Tinto is pleased to be in Rwanda exploring for lithium and to have
partnered with Aterian through the Kinunga JV on our first project.
Exploration activities are now safely underway, and we look forward to seeing
the results of the data currently being collected. We appreciate the support
of the Government of Rwanda and look forward to continuing our work here".

 

Simon Rollason, CEO of Aterian:

 

"Since announcing our lithium joint venture with Rio Tinto, much progress has
been made in preparation and initiating exploration at the HCK site in
southern Rwanda, with encouraging preliminary data being generated. 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 look forward to
updating the market on our exploration efforts. This is a great project for
Rwanda, its people, and the continent of Africa - which is integral for a
successful energy transition."

 

Operational Update:

 

A summary of activities being managed and operated by Rio Tinto is given
below:

 

·    Licence-wide geological surface mapping has been completed on road
exposures throughout the licence, with an emphasis on capturing lithology and
structural data. Additional infill mapping has been completed over multiple
targets within the licence, including HCK-1, HCK-2, the southeast area, and
Buranga.

 

·      Participation in local community projects, including donating and
planting 3,000 tree saplings over the project.

 

 

·   A reinterpretation of the Aterian geochemical soil samples collected
from a 400 x 200m wide-spaced sampling campaign has identified several new
anomalies (Li-Cs-Ta-Sn). Follow-up closer-spaced sampling of isolated
anomalies will be undertaken in 2024.

 

·   Two soil orientation sampling lines were completed over HCK-1, with 74
samples collected at depths (from the surface) of 30cm, 50cm and 1m, collected
over 27 sampling sites at 40m spacing. Results will inform the optimum
sampling depth for further sampling campaigns in 2024.

 

·      A ground-based magnetic survey over the whole licence was
completed in November at 100m line spacing, totalling 253 line-km. Initial
orientation radiometric lines over HCK-1 have shown this to help identify
covered (blind to surface) pegmatites. The trial has been extended to a 156
line-km survey west of the Mwogo River, with the eastern bank expected to be
completed in early 2024.

 

The HCK Project

Aterian has a Joint Venture 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 having 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.

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, currently underway, has commitment 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%.

·      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 existing Rwandan
projects, pending licence approval with the authorities.

 

- 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 (http://www.aterianplc.com) or contact:

 

Aterian Plc:

Charles Bray, Executive Chairman - charles.bray@aterianplc.com
(mailto:charles.bray@aterianplc.com)

Simon Rollason, Director - simon.rollason@aterianplc.com
(mailto:simon.rollason@aterianplc.com)

 

Corporate Adviser and Broker:

Novum Securities Limited

David Coffman / George Duxberry

Tel: +44 (0)207 399 9400

 

Broker:

SP Angel Corporate Finance LLC

Ewan Leggat / Kasia Brzozowska

Tel: +44 20 3470 0470

 

Financial PR:

Bald Voodoo - ben@baldvoodoo.com

Ben Kilbey

Tel: +44 (0)7811 209 344

Notes to Editors:

About Aterian plc

www.aterianplc.com (http://www.aterianplc.com)

 

Aterian plc is an LSE-listed exploration and development company with a
diversified African portfolio of critical metals projects.

Aterian plc is actively seeking to acquire and develop new critical 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
has a portfolio of 17 copper-silver and base metal projects in the Kingdom of
Morocco, with a project area of 897 km(2). In January 2024, the Company
announced the acquisition of a 90% interest in Atlantis Metals. This private
Botswana registered company holds one mineral prospecting licence for
copper-silver in the Kalahari Copperbelt and three licences for lithium brine
exploration in the Makgadikgadi Pans region. The total licence area in
Botswana is 3,516 km(2).

 

The Company's strategy is to seek new exploration and production opportunities
across the African continent and to develop new sources of critical mineral
assets for exploration, development, and trading.

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