London-listed critical metal-focused exploration and development company Aterian has sold its portion of the net smelter return royalty (NSR) over the HCK lithium project, in Rwanda, for £200 000.
The company announced on April 29 that it had signed an agreement to sell an interest of 1.4% of the Rio Tinto joint venture NSR to Elemental Altus Royalties. This royalty reduces to 1.25% upon the Musasa licence being issued in Rwanda.
Aterian said it had engaged strategic advisers Collingwood Capital Partners to approach several royalty companies to gain expressions of interest in buying the NSR and to provide third-party oversight in the sale of the NSR to Elemental Altus, which proved to be the best option.
"The sale of the Rwandan royalty interest to Elemental Altus aligns with our overarching strategy of prioritising financial discipline, strengthening the balance sheet and maximising shareholder value. We want this to be the first of many new asset value realisation efforts across our portfolio.
“We believe this transaction, marking the first royalty sale in Rwanda, positions us for continued success in a challenging market environment, enabling us to capitalise on our portfolio assets and deliver sustainable long-term growth," Aterian chairperson Charles Bray said.