Highlights:
- 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.
o Stage 1 exploration expenditures of US$3 million over a period of up to two years to earn a 51% interest in the Licence.
o 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%.
- Cash consideration of US$300,000 over the two stages.
- A 2% capped NSR granted over the Project (capped at US$50 million).
- RIO has the option to add Aterian’s two other Rwandan projects, pending licence approval with the authorities.
- The Project has 19 identified pegmatite zones over its 2,750 hectare Licence in southern Rwanda.
- Project located close to good infrastructure, including national highways, power and water.
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. …. We believe this investment highlights the opportunity and transformational potential of the Rwanda mining sector. “
“Lithium is a key commodity for global electrification ambitions, as it is the central chemical element of dominant battery chemistries. Benchmark Minerals Intelligence forecasts that in 2023 lithium demand will reach 900,000 tonnes, a jump of 27% year-over-year and further forecast to reach 1.5 million tonnes in 2026. 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. While we focus on working closely with Rio Tinto and our Rwandan stakeholders to ensure the success of this project, we will also look to replicate the capital efficient exploration and development business model in our other project concessions in Rwanda and Morocco.”