REG - Aterian PLC - Rwanda Musasa Licence and Mineral Trading

AterianAnnouncement

17/10/2024 07:00

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RNS Number : 4804I  Aterian PLC  17 October 2024

17 October 2024

 

Operational Update: Rwanda

Musasa Licence and Mineral Trading

 

Aterian Plc

("Aterian" or the "Company")

 

Aterian Plc (LSE: ATN), the critical metal-focused exploration and development
company, today provides an operational update on activities in the Republic of
Rwanda ("Rwanda").

 

Musasa Exploration Licence

The final licence documents ("Musasa Licence") and Exploration Agreement
("Agreement") concluded with the Rwanda Mines, Petroleum and Gas Board ("RMB")
have been received and the mineral exploration licence granted. Musasa Mining
Limited ("MML"), an 85% owned subsidiary of the Company, holds the Musasa
Licence. Under the terms of the Agreement, the exploration licence is awarded
for a four-year period and covers an area of 350 hectares. The licence is
located within the Rutsiro District of the Western province.

 

The current partner, Kuaka Cooperative ("Kuaka"), holds 15% of MML. Kuaka has
agreed to the transfer of its 15% shareholding in MML to a 100% owned
subsidiary of the Company in exchange for past consideration provided by the
Company, including the provision of water reticulation assets to Kuaka's
small-scale processing facility. Pending administrative completion of the
agreed share transfer with Kuaka, the Company will have beneficial ownership
of 100% of MML.

 

Trading Update

Eastinco Limited ("Eastinco"), a 100% owned subsidiary of Aterian plc, holding
a Rwandan mineral trading licence, has temporarily suspended all secondary
trading activities, effective immediately, at its operations in Kigali. This
decision has been made in light of significant issues with the ongoing rollout
of a new online mineral tracability platform, called the "Inkomane System",
which is a new initiative of the RMB. Eastinco has registered with the
Inkomane platform which is managed and operated by a third party, and designed
for managing mine workers, taxation, traceability, and inspections in the
mining sector.

 

The implementation and enrolment of mining companies and mineral traders to
the system has been slow, resulting in very restricted trading activity over
the past few weeks across the entire market. Presently only participants
registered on the new system can apply for mineral tags, which are required
for trading and mineral exports tracebility. Given the substantial reduction
in mineral trading market participants and activity, Eastinco has suspended
operations until normal market conditions can be re-established. We seek
further clarification on the rollout of this new trading registration
platform, and the Eastinco trading suspension will remain in effect until the
Company has clear guidance on the future requirements, costs, and rationale
and can ensure full compliance with the international traceability and OECD
regulations.

 

We remain committed to working closely with the RMB to resolve this matter as
swiftly as possible, and we will provide updates to all stakeholders as the
situation develops.

 

Eastinco remains dedicated to maintaining the highest standards of regulatory
compliance and governance, and we appreciate the patience and understanding of
our partners and investors during this period.

 

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

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 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 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 lithium-tantalum-niobium-tin mining
operations. Aterian currently holds a portfolio of multiple copper-silver and
base metal projects in the Kingdom of Morocco. In January 2024, the Company
announced the acquisition of a 90 % controlling interest in Atlantis Metals.
This private Botswana registered company holds seven mineral prospecting
licences 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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