Mining royalty generator Altus Strategies has signed an agreement to divest its Moroccan portfolio to Eastinco Mining and Exploration, creating a new pan-African strategic metals development company.
Under the agreement, Altus agreed to divest its 100% Morocco-focused subsidiary Aterian Resources to Eastinco.
In exchange, Eastinco will issue 25% of its shares to Altus, which will also hold the right to nominate a member to join Eastinco’s board.
Altus will also receive up to 10% of additional warrants in Eastinco.
In addition, the mining royalty generator will own 15 new royalties, which will include a royalty on the Musasa tantalum mine in Rwanda.
Battery metals focused explorer Aterian holds a portfolio of 15 primarily copper and silver exploration projects in Morocco.
Eastinco is currently advancing a portfolio of tantalum-niobium-tin projects in Rwanda.
The acquisition forms part of the company’s aim to become a significant critical metals resource company.
In a press statement, Eastinco said: “The company considers that critical metals are strategic resources that are essential to the global economy and whose supply has a significant impact on the production of key products, including those linked to renewable energy production, electric vehicle battery and equipment manufacturing and infrastructure.”
Meanwhile, Eastinco plans to change its name to Aterian once the deal is completed.
Altus CEO Steven Poulton said: “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 will also receive a reimbursement of up to £250,000 in respect of certain exploration expenditures incurred by Aterian in 2021.”
Earlier this year, Altus Strategies subsidiary Akh Gold secured gold exploration licences in Egypt.