REG - Aterian PLC - Rio Tinto Joint Venture Update

AterianAnnouncement

24/10/2023 07:00

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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 (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 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 (http://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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