Altus Strategies PLC (AIM:ALS, TSX-V:ALTS, OTCQX:ALTUF) has entered into a sale and purchase agreement and other agreements with AQSE Growth Market-listed Eastinco Mining and Exploration PLC for the sale of the 100%-owned subsidiary Aterian Resources Ltd.
Aterian is advancing a portfolio of 15 primarily copper and silver exploration 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 shares to the Standard List of the London Stock Exchange.
As a result of the transaction Altus will own up to 25% of Eastinco. Altus will also receive warrants for up to an additional 10% of Eastinco. It will also secure 15 new royalties, including a royalty on the Musasa tantalum mine in Rwanda. Altus will also receive a reimbursement of up to £250,000 in respect of certain exploration expenditures incurred by Aterian in 2021.
Eastinco proposes to change its name to Aterian PLC on completion of the transaction.
"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,” said Steven Poulton, chief executive of Altus.
“The enlarged entity will have a strong and unique portfolio of strategic metal exploration and development projects in Morocco and Rwanda.”