Aterian, Rio Tinto ink deal for lithium exploration in Rwanda
Aterian, Rio Tinto, and Kinunga Mining in Rwanda have sealed a joint venture to explore and develop lithium and by-products within Aterian’s HCK licence area hectares in southern Rwanda.
Under the terms of the deal, Rio Tinto has the option to invest a total of $7.5 million in two stages to earn a stake of up to 75% in the licence for lithium exploration. The first stage allows Rio Tinto to invest $3 million over a period of up to two years for the initial exploration. This will earn Rio Tinto a 51% interest in the licence.
Exploration processÂ
Following the successful completion of Stage One, Rio Tinto will invest an additional $4.5 million over a follow-on period of up to three years. This will give Rio Tinto an additional 24% stake in the licence, bringing their total stake to 75%.
In addition to the cash consideration for the two stages, which amounts to $300,000, Rio Tinto will also receive a 2% net smelter return (NSR) over the project, capped at $50 million. Moreover, Rio Tinto has been presented with an option to include two other Aterian projects in Rwanda in the deal, pending approval from relevant authorities.
Aterian’s chairman, Charles Bray, expressed his enthusiasm about the partnership, noting that the deal is transformative for Aterian and demonstrates their ability to identify significant deposits of critical minerals like lithium. He thanked Rio Tinto for their collaboration and investment in Rwanda’s lithium potential.
The HCK licence is currently held by Aterian in a joint venture with HCK Mining, a privately registered entity in Rwanda. Aterian holds a 70% stake in Kinunga Mining, the company holding the project licence, while HCK Mining owns the remaining 30% stake.
