Main Market-listed Aterian plc has recently entered into a joint venture with Rio Tinto, the world’s second largest critical metals and mining company, for development of its flagship Rwandan lithium mining project.
The deal gives Rio Tinto the option to earn up to a 75% interest in the project in two stages. The project has 19 identified pegmatite zones over its 2,750-hectare licence in southern Rwanda providing the prospective scale necessary to attract Rio Tinto as a major partner. This project will be Rio’s first foray into Rwanda and demonstrates the company’s continued commitment to sourcing new assets and acquiring lithium projects to contribute to the green energy transition.
Provision of legal advice to Aterian on the terms of the joint venture was led by Hill Dickinson corporate partner Jonathan Morris and senior associate Amy Grosvenor.
Jonathan Morris said:
“Having acted as legal adviser to Aterian’s management team on the company’s Main Market IPO in October last year, it is a measure of their ambition and success to date to see them embark on a joint venture with a partner the size and reputational standing of Rio Tinto.
“This was an interesting deal, as this seems to form part of a Rio Tinto strategy of making small, bolt-on acquisitions to shape its portfolio particularly in the lithium space where it recently invested into the Quebec project of Azimut Exploration Inc.
“Despite the current economic headwinds in the UK we are seeing continued activity in the mining sector and in respect of transition metals in particular. We are also seeing majors taking stakes in the development with early-stage projects with significant potential.
“We look forward to monitoring the developments of Aterian’s Rwandan projects.”
