Aim- and TSX-V-listed mining royalty generator Altus Strategies has entered into a sale and purchase agreement and other agreements with London AQSE Growth Market-listed Eastinco Mining and Exploration.

Under the terms of the agreements, Altus will sell its 100%-owned subsidiary Aterian Resources to Eastinco.

Aterian is advancing a portfolio of 15 primarily copper and silver exploration projects in Morocco.

Eastinco is currently advancing a portfolio of tantalum exploration and development projects in 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 Financial Conduct Authority to trading on the LSE's main market for listed securities.

Altus will vend its 100%-owned Morocco-focused subsidiary Aterian into Eastinco in exchange for a 25% in Eastinco. Altus will have the right to nominate a member to join Eastinco's board.

Altus will also receive warrants for up to an additional 10% of Eastinco.

Moreover, Altus will own 15 new royalties, including a royalty on the Musasa tantalum mine in Rwanda.

Meanwhile, Eastinco plans to transform into a pan-African strategic metals development company and proposes changing its name to Aterian on completion of the transaction.

"We are delighted to announce the proposed divestment to Eastinco of our 100%-owned Morocco-focused exploration subsidiary, Aterian, as part of Eastinco's proposed LSE standard listing and subsequent name change to Aterian.

“The enlarged entity will have a strong and unique portfolio of strategic metal exploration and development projects in Morocco and Rwanda,” Altus CEO Steven Poulton says.

“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,” Poulton notes.