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Highlights
- Drilling on the HCK Project resumes under Rio Tinto's management after the New Year break.
- Two initial drill holes completed at the HCK-1 target; geochemical assay results expected by Q1 2025.
- Rio Tinto progressing under a $7.5 million JV agreement to earn a 75% interest in the project.
Aterian Plc (LSE:ATN), a company focused on critical metals exploration and development, has provided a progress update on drilling operations at the HCK Project in Rwanda's Southern Province. The project, managed and supervised by Rio Tinto Mining and Exploration Limited, forms part of Aterian’s strategy to support the global energy transition through critical metal exploration.
Drilling Progress
Drilling activities on the HCK Project recommenced after the New Year holidays, with Rio Tinto completing two drill holes at the HCK-1 target prior to the year-end break. These initial holes were drilled to depths of 251.6 meters and 251.5 meters, respectively, intersecting multiple pegmatite dykes.
A third hole is currently in progress at the HCK-1 target, further advancing exploration efforts. The cores from the completed holes have been transported to Rio Tinto's yard in Kigali, where they are undergoing detailed geological and mineralogical logging. Once the analysis is complete, samples will be sent to an external international laboratory for geochemical assays. Initial results are expected before the end of Q1 2025.
The HCK Project Overview
The HCK Project is located within a 2,750-hectare exploration license in southern Rwanda, approximately 65 km southwest of Kigali and 20 km northwest of Huye. The license area, straddling the Nyanza and Huye Districts, is held through a joint venture between Aterian and HCK Mining Company Limited.
Under the agreement, Aterian holds a 70% interest in Kinunga Mining Limited, the entity controlling the license, while HCK Mining Company Limited retains a 30% interest.
Rio Tinto Joint Venture Agreement
Rio Tinto’s involvement in the project stems from a joint venture agreement that provides the mining giant with the option to invest up to $7.5 million in two stages, enabling it to earn a 75% interest in the exploration license.
- Stage 1: Rio Tinto will spend $3 million over two years to earn a 51% interest in the license.
- Stage 2: An additional $4.5 million over three years will secure an additional 24% interest, taking Rio Tinto’s total stake to 75%.
The agreement also includes a cash consideration of $300,000 paid across the two stages and a 2% capped net smelter return (NSR), limited to $50 million.
