Business
Lithium Joint Venture with Rio Tinto in Rwanda
Lithium Joint Venture with Rio Tinto in Rwanda.
About this update from Aterian Plc
[{"type":"text","content":"\n\n01 August 2023\n \nLithium Joint Venture with Rio Tinto in Rwanda\nAterian Plc (\"Aterian\" or the \"Company\")\nAterian 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 (\"Agreement\") with Rio Tinto Mining and Exploration Ltd (\"RIO\") and Kinunga Mining Ltd (\"Kinunga\"). The Agreement is for the exploration and development of lithium and by-products at its HCK Joint Venture project (\"Project\") holding the HCK licence (the \"Licence\") in the Republic of Rwanda.\n \nHighlights:\n· RIO 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.\no Stage 1 exploration expenditures of US$3 million over a period of up to two years to earn a 51% interest in the Licence.\no 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%.\n· Cash consideration of US$300,000 over the two stages.\n· A 2% capped Net smelter return (\"NSR\") granted over the Project (capped at US$50 million).\n· RIO has the option to add Aterian's two other Rwandan projects, pending licence approval with the authorities.\n· The Project has 19 identified pegmatite zones over its 2,750-hectare Licence in southern Rwanda.\n· Project located close to good infrastructure, including national highways, power and water.\n \nCharles Bray, Chairman of Aterian, commented:\n\"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.\n \nI am very proud of the Aterian team and their work to identify and unlock strategic mineral assets in Afri...