REG - Aterian PLC - Rio Tinto Drilling Update, Rwanda

AterianAnnouncement

28/01/2025 07:00

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RNS Number : 8252U  Aterian PLC  28 January 2025

28 January 2025

 

Operational Update:

Rio Tinto Drilling Update, Rwanda

 

Aterian Plc

("Aterian" or the "Company")

 

Aterian Plc (LSE: ATN), the critical metal-focused exploration and development
company, is pleased to provide a progress update on drilling operations on the
HCK Project ("Project") in the southern province of the Republic of Rwanda
("Rwanda"). Rio Tinto Mining and Exploration Limited ("Rio Tinto") supervises
and manages the drilling.

 

Drilling operations on the Project have now recommenced after the New Year
holidays. Before the year-end cessation, Rio Tinto successfully completed two
holes on the HCK-1 target, with a third hole currently in progress on the
HCK-1 target. Multiple pegmatite dykes were intersected in the initial two
holes, which were drilled to depths of 251.6 m and 251.5 m, respectively. At
this stage, there are no detailed geological or geochemical recordings from
these two completed holes. The drilled core has been transported to the Rio
Tinto yard in Kigali and is undergoing detailed geological and mineralogical
logging. Once completed, the samples will be shipped to an external
international laboratory, with initial geochemical assay results expected
before the end of Q1/2025.

 

Charles Bray, Chairman of Aterian, commented: "This is a very exciting period
of progress and opportunity for Aterian plc. In recent months, we have made
significant strides in advancing our strategic objectives, one of which was to
see our Rwanda exploration portfolio advance. The joint venture with Rio Tinto
will in every case further our knowledge of Rwanda and the viability of the
HCK project as a potential development based on its lithium and/or tantalum
potential.  The experience and knowledge gained will better position us as a
player in the ever evolving landscape of natural resource exploration and
development. The assay results will not only provide valuable insights into
the quality and scope of HCK as a lithium project but will also guide our next
steps toward unlocking the project's full value for all stakeholders.

While we await these results, I want to highlight and commend the
collaborative efforts of our team and our partners' teams who have worked
tirelessly to ensure the success of this exploration campaign. We remain
steadfast in our mission to create sustainable value for our shareholders and
will utilise the knowledge gained at HCK across the entire Aterian exploration
portfolio. Our ongoing projects in Morocco and Botswana continue to
demonstrate exceptional potential.

I thank you for your continued trust and support in Aterian plc. We will keep
you updated on the exploration efforts at HCK as they become available. In the
meantime, we are focussed on creating value from all of our assets and
committed to delivering long-term success to our shareholders."

 

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 ("the
Licence"), 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.

 

Rio Tinto JV Agreement Details

Rio Tinto has the option to invest US$7.5 million in two stages to earn up to
a 75% interest in the Licence to explore for minerals vital for a successful
energy transition to renewable energy.

 

·    Stage 1 exploration expenditures of US$3 million over a period of up
to two years to earn a 51% interest in the Licence.

·    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's interest in the Licence to 75%.

·    Cash consideration of US$300,000 paid over the two stages.

·    A 2% capped Net smelter return ("NSR") granted over the Project
(capped at US$50 million).

 

Qualified Person

The technical disclosure in this regulatory announcement has been approved by
Simon Rollason, Chief Executive Officer of Aterian Plc. He is a graduate of
the University of the Witwatersrand in Geology (Hons) and a Member of the
Institute of Materials, Minerals and Mining, with over 30 years of experience
in mineral exploration and mining.

 

- 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)

 

Financial Adviser and Joint Broker:

Novum Securities Limited

David Coffman / George Duxberry

Colin Rowbury

Tel: +44 (0)207 399 9400

 

Joint Broker:

SP Angel Corporate Finance LLP

Ewan Leggat / Adam Cowl

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 while 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, which 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 to explore and develop a lithium-tantalum-niobium-tin mining
operation. The Company also holds an exploration licence in Rwanda. Aterian
has a portfolio of multiple copper-silver (+ gold) and base metal projects in
Morocco. 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 for lithium brine exploration in the Makgadikgadi Pans region.

 

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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