Altus Strategies agrees to sell Aterian division to Eastinco Mining
Altus Strategies has entered into a sale and purchase agreement with Eastinco Mining and Exploration to sell its wholly-owned subsidiary Aterian Resources, it announced on Monday.
The AIM-traded firm’s Aterian division was advancing a portfolio of 15 primarily copper and silver exploration projects in.
Eastinco, meanwhile, was currently advancing a portfolio of tantalum exploration and development projects in Rwanda.
The company said the transaction remained subject to a number of conditions, including the admission to trading of Eastinco to the London Stock Exchange main market.
After completion, Altus would own up to 25% of Eastinco and an Altus appointee would join Eastinco's board, with Altus also receiving warrants for up to an additional 10% of Eastinco.
Altus would also own 15 new royalties, including a royalty on the Musasa tantalum mine in Rwanda.
Eastinco, meanwhile, would transform into a pan-African strategic metals development company, and was proposing to change its name to Aterian on completion.
“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,” said Altus chief executive officer Steven Poulton.
“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.”
Poulton noted that Altus would become a material shareholder of Eastinco with up to 25% of its issued capital at admission.
Altus would 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.
Steven Poulton said Altus would also receive a reimbursement of up to £0.25m for 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.”