LONDON, UK: Aterian plc (LSE: ATN), the exploration and development company advancing its portfolio of African-focused critical and strategic metal assets, announces that it has signed a definitive Earn-In Investment and Joint Venture Agreement with Rio Tinto Mining and Exploration Ltd and Kinunga Mining Ltd.
The Agreement is for the exploration and development of lithium and by-products at its HCK Joint Venture project in the Republic of Rwanda.
Rio Tinto has the option to invest US$7.5 million in two stages to earn up to a 75% interest in the project, which has 19 identified pegmatite zones over its 2,750-hectare licence in southern Rwanda. Lithium is a key commodity for global electrification ambitions, as it is the central chemical element of dominant battery chemistries.
Charles Bray, Chairman of Aterian, commented: “This is a transformative deal for Aterian and highlights our ability to identify potential world-class deposits in critical minerals such as lithium. We have identified 19 separate LCT (lithium-caesium-tantalum) pegmatite zones across the 2,750-hectare project offering the prospective scale necessary to attract such a major partner as Rio Tinto.”
He added: “The Agreement with Rio delivers material value to Aterian shareholders endorsing Aterian’s capital efficient business model as well as demonstrating the potential of Rwanda as a mining jurisdiction.”
The Agreement is subject to conditions, including the addition of lithium as an exploration commodity on the licence, which is expected in due course.
Rio Tinto grows production and earnings, declares 177 US cents dividend