17th Oct 2024 11:55
(Alliance News) - Aterian PLC on Thursday said it has been granted a mineral exploration licence for the Musasa region in Rwanda, and also announced a temporary suspension of activities at its Kigali site.
The Africa-focused mining company said its 85% owned subsidiary, Musasa Mining Ltd, holds the exploration licence, which was granted by the Rwanda Mines, Petroleum and Gas board. The licence covers a four-year period and involves an area of 350 hectares in the Rutsiro district of the Western province.
In addition to this, Kuaka Cooperative, the partner holding the remaining 15% of Musasa Mining, has agreed to transfer its holding to a 100% owned subsidiary of Aterian. In exchange, it will receive past consideration provided by Aterian, including water reticulation assets for Kuaka's small-scale processing facility.
Aterian also announced on Thursday that its wholly-owned subsidiary, Eastinco Ltd, has temporarily suspended all secondary trading activities at its operations in Kigali, following "significant issues" with the rollout of the new online mineral traceability platform, Inkomane System.
"The implementation and enrolment of mining companies and mineral traders to the system has been very slow, resulting in very restricted trading activity over the past few weeks across the entire market", Aterian explained. "Presently, only participants registered on the new system can apply for mineral tags, which are required for trading and mineral exports traceability. Given the substantial reduction in mineral trading market participants and activity, Eastinco has suspended operations until normal market conditions can be re-established."
Shares in Aterian were down 6.5% at 50.00 pence each in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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