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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