Aterian Shares Rise on Lithium JV Agreement With Rio Tinto in Rwanda
August 01 2023 - 4:00AM
Dow Jones News
By Anthony O. Goriainoff
Aterian shares rose Tuesday after the company said it has signed
an earn-in investment and joint-venture agreement for the
exploration and development of lithium and lithium by-products at
its HCK project in Rwanda.
Shares at 0829 GMT were up 0.13 pence, or 12%, at 1.18
pence.
The London-listed Africa-focused exploration and development
company said the agreement was signed with Rio Tinto Mining and
Exploration and Kinunga Mining.
The company said Rio Tinto has the option to invest up to $7.5
million in two stages so as to earn up to a 75% interest in the
license to explore for minerals. Rio will also make cash payments
to Aterian totaling $300,000 to reimburse previous operational
expenses incurred.
The company said an initial $200,000 payment is due on
completion of satisfactory due diligence by Rio Tinto, and that an
additional $100,000 payment will be due at the start of stage
2.
Aterian added that it has granted Rio Tinto a 2% net smelter
return over the project capped at $50 million which will be due by
the future joint venture between Rio Tinto and Kinunga. It added
that Rio Tinto also has an exclusivity option to invest in
Aterian's other two projects in Rwanda.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
August 01, 2023 04:45 ET (08:45 GMT)
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