Skip to main content

Altus to vend Moroccan portfolio to Eastinco

Published by
Global Mining Review,


Altus Strategies Plc announced that, on 21 November 2021, the company entered into a sale and purchase agreement and other agreements with London AQSE Growth Market listed Eastinco Mining and Exploration plc to sell the company's 100% owned subsidiary Aterian Resources Ltd to Eastinco (the transaction). Aterian is advancing a portfolio of 15 primarily copper and silver exploration projects (Aterian Projects) in the Kingdom of Morocco. Eastinco is currently advancing a portfolio of tantalum exploration and development projects in the Republic of Rwanda. The transaction remains subject to certain conditions precedent, including the admission to trading of Eastinco's entire issued share capital to the Official List of the FCA (Standard Segment) (admission) and to trading on the London Stock Exchange's Main Market for listed securities (LSE Standard Listing).

Highlights

  • Altus to vend its 100% owned Morocco focused subsidiary Aterian into Eastinco.
  • Altus to own up to 25% of Eastinco and an Altus appointee will join Eastinco's board.
  • Altus to receive warrants for up to an additional 10% of Eastinco.
  • Altus to own 15 new royalties, including a royalty on the Musasa tantalum mine in Rwanda.
  • Eastinco to transform into a pan-African strategic metals development company.
  • Eastinco currently owns tantalum exploration and development projects in Rwanda.
  • The transaction remains subject to Eastinco's Admission and LSE Standard Listing.
  • Eastinco proposes to change its name to Aterian Plc on completion of the transaction.

Steven Poulton, Chief Executive of Altus, commented: “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.

“The transaction will result in Altus generating a portfolio of 15 new royalties on the Aterian portfolio, of primarily copper and silver projects, as well as a royalty on the Musasa tantalum mine in Rwanda. Altus will be-come a material shareholder of Eastinco with up to 25% of the issued capital at admission. Altus will also hold share purchase warrants for up to an additional 10% of Eastinco, subject to certain restrictions, retaining a significant stake in the enlarged Aterian portfolio. Altus will also receive a reimbursement of up to £250 000 in respect of certain exploration expenditures incurred by Aterian in 2021.

“The transaction with Eastinco reflects our confidence in the Aterian Projects and is in line with our business model of making and monetising exploration discoveries in return for equity, cash and the creation of new royalty interests. We look forward to the completion of the transaction, the successful admission of Eastinco and to supporting the Eastinco team going forward.”

Charles Bray, Executive Chairman of Eastinco, added: “I am delighted to report on our proposed acquisition of Aterian for its significant portfolio of 15 copper, silver and base metal exploration projects strategically positioned close to existing mining projects in Morocco. Upon completion, Altus will become a strategic shareholder of Eastinco, demonstrating Altus' confidence in the projects and providing us with an alignment of interest and the support of a well-respected industry player. Previous exploration undertaken by Altus on the Moroccan assets has highlighted 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 growth in demand for renewable energy and the related electrification of transportation globally.

“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. This is a key step to becoming a leading strategic metal exploration and development company in Africa.”

Read the article online at: https://www.globalminingreview.com/finance-business/22112021/altus-to-vend-moroccan-portfolio-to-eastinco/

You might also like

 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

African mining news Copper mining news Silver mining news