REG - Aterian PLC - Rwanda Update: Trade Financing Agreement

AterianAnnouncement

23/04/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250423:nRSW7247Fa&default-theme=true

RNS Number : 7247F  Aterian PLC  23 April 2025

23 April 2025

 

Aterian Plc

("Aterian" or the "Company")

 

Rwanda Update: Trade Financing Agreement

Aterian Plc (LSE: ATN), a critical metal-focused exploration and development
company, is pleased to announce that, further to the announcement of 12 March
2025, it has now signed a trade finance agreement ("Agreement") with a global
commodity trading and financial house ("Financier"). This Agreement marks a
transformational step forward for Aterian's trading division and represents a
tangible execution of the Company's strategic vision to build a scalable,
revenue-generating platform supporting its exploration and development
activities across Africa.

Charles Bray, Chairman of Aterian, commented:

 

"This is a significant milestone in Aterian's strategic journey, marked by the
signing of a transformative trade finance agreement. This facility, totalling
up to USD 4.5 million, marks a pivotal step in transitioning Aterian from a
solely exploration-focused company to an operational trading entity capable of
generating consistent revenues.

Significantly, this income-generating structure reduces our dependency on
equity financing, helping to preserve shareholder value while accelerating our
commercial strategy. This Agreement enables the immediate funding of tantalum,
niobium, and cassiterite consignments and positions Aterian to benefit from
commodity sales while leveraging minimal upfront capital.

We remain deeply focused on our core strategy: unlocking the value of Africa's
critical mineral resources while ensuring a financially disciplined approach.
Combined with our existing exploration partnerships, including the joint
venture with Rio Tinto in Rwanda, this Agreement significantly strengthens our
platform for long-term success.

On behalf of the Board, I thank our shareholders for their continued support.
We look forward to updating the market as we realise the benefits of this
agreement, receive the drill assay results, and execute our broader growth
objectives."

Under the terms of the Agreement, the Financier will provide a USD 4,500,000
operational trading facility ("Trade Facility") to provide funding of the
traded minerals and will be utilised immediately to fund the additional
trading of tantalum, niobium, and cassiterite. The Trade Facility has an
interest rate of 1-month SOFR (Secured Overnight Financing Rate) plus 3.5%.
The Agreement has a five-year facility period, commencing immediately.

Outlook - Strengthening Foundations for Growth

This Trade Facility provides Aterian with immediate capital to expand its
mineral trading business by significantly scaling up its mineral sourcing and
trading volumes across Rwanda and the broader region. This development is
expected to contribute to early and growing revenues, reinforcing the
Company's goal to cover operational expenditures through trading cash flows.

Aterian's strategy is centred on developing critical minerals across Rwanda,
Morocco, and Botswana, particularly copper and lithium assets. Several
high-priority exploration projects are underway, as the Company continues to
position itself as a major player in Africa's critical metals mineral
exploration industry.

The Aterian partnership-driven exploration model has already demonstrated
success with a landmark lithium exploration joint venture with Rio Tinto
Mining and Exploration Limited ("Rio Tinto") in Rwanda, which commenced in
late 2023. This joint venture is expected to shortly demonstrate results,
which will also include the potential for tin, tantalum, and niobium
discovery. Importantly, these so-called bi-product minerals are value-added to
the Company in all cases. The Company's collaborative approach will continue
to be a cornerstone of its strategy, ensuring sustainable growth, minimising
expenditure, and increasing shareholder value as the Company advances its
priority projects.

Rio Tinto JV, Rwanda - Drill Update

The completed drill programme on the HCK Project comprised four drill holes
for 1180 m, targeting the HCK-1 and HCK-2 prospects. A total of 870 diamond
core drill samples were submitted for laboratory assay analysis in Q1/2025,
with the results now being received and analysed by Rio Tinto.

Community and Environmental Responsibility

Aterian and Rio Tinto are committed to maintaining strong relationships with
local communities and conducting exploration activities in an environmentally
responsible manner. Ongoing engagement with the local community and
authorities remains a priority, including support for local schools. All
activities are conducted with a focus on health, safety, and environmental
stewardship.

- 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

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 (mailto: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 developing the renewable
energy, automotive, and electronic manufacturing sectors, which are
increasingly important in reducing carbon emissions and meeting global climate
ambitions.

 

The Company has entered into a joint venture agreement with Rio Tinto Mining
and Exploration Limited. Rio Tinto will earn into the HCK project in
southern Rwanda, exploring and developing 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. Aterian holds a 90% interest in Atlantis Metals, a
private Botswana-registered company holding seven mineral prospecting licences
for copper-silver in the world-renowned 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUUUSRVUUSUAR