Mining royalty generator Altus Strategies has entered into an agreement to sell its 100% owned subsidiary Aterian Resources Ltd to Eastinco Mining and Exploration. Altus Strategies is a mining royalty generator based in the UK that focuses on generating a diverse portfolio of precious metals.
Altus has agreed to sell 100% of the Morocco-focused subsidiary to Eastinco, along with receiving up to 10% of additional warrants in Eastinco. It was also included in the agreement that Altus will be a shareholder of up to 25% of Eastinco, as well as having the option to let an Altus member join the Eastinco board. In addition, Altus will own 15 new royalties including a royalty on the Musasa tantalum mine in Rwanda.
Steven Poulton, Chief Executive of Altus said in a statement, “We are delighted to announce the proposed divestment to Eastinco of our 100% owned Moroccan focused exploration subsidiary, Aterian, as part of Eastinco’s proposed LSE Standard Listing and subsequent name change to Aterian Plc. The enlarged entity will have a strong and unique portfolio of strategic metal exploration and development projects in Morocco and Rwanda.”
Through this new agreement, Eastinco is planning to transform into a pan-African strategic metals development company, including a subsequent name change to Aterian Plc upon completion of the transaction.
Eastinco currently owns tantalum exploration and development projects in Rwanda. It is an investment company whose focus is on acquiring assets for the ethical exploration, development and trading of critical minerals across the African continent.
Charles Bray, Executive Chairman of Eastinco said in a press release: “I am delighted to report on this proposed acquisition of a significant portfolio of 15 copper, silver and other base metal exploration projects strategically positioned close to existing mining projects in Morocco. Upon completion, Altus will become a strategic shareholder of the Company, demonstrating Altus’ confidence in the projects, and providing us with an alignment of interest and the support of a well-respected industry player.”
Bray continued “Previous exploration undertaken by Altus on the Moroccan assets highlight the strong potential for the discovery of deposits of strategic metals in particular, copper and silver. We believe the market fundamentals for copper are excellent, specifically linked to the anticipated growing demand for renewable energy and the related electrification of transportation globally.”
The agreement still remains subject to certain conditions including the admission to trading of Eastinco’s entire issued share capital to the Official List of the FCA and to trading on the London Stock Exchange’s Main Market for listed securities.
“We consider this to be the optimal time to broaden and strengthen our asset portfolio across Africa, adding to our established tantalum mining and exploration projects in Rwanda. Our working relationship with Altus will also guarantee a smooth transition to ensure exploration continues in Morocco without interruption. Our proposed LSE Standard Listing will provide us with exposure to a wider investor profile and greater liquidity in our shares and, therefore, a solid platform from which we can continue to grow,” Bray said.
Charles Bray believes this is a key step to becoming a leading strategic metal exploration and development company in Africa.
“We look forward to the completion of the acquisition, the successful Admission of Eastinco, and to supporting the Eastinco team going forward,” Poulton concluded.