By: Creamer Media

The agreement establishes a framework for sourcing and supplying 3T concentrates from Rwanda and is expected to provide additional feedstock volumes for Aterian's growing trading operations.

Aterian says the agreement represents a further step in its strategy to build a scalable, cash-generative critical minerals trading platform alongside its exploration and development portfolio across Africa.

The company says its management believes the expansion of the trading business has the potential to become an increasingly important contributor to shareholder value as trading volumes continue to grow.

The arrangement aligns with the group's strategy to expand its footprint within the East African critical minerals supply chain and strengthen relationships with regional producers and processors.

The agreement includes provisions relating to responsible sourcing, traceability and operational collaboration. The company says it expects the agreement to support increasing trading activity over time as supply volumes ramp up in line with operational targets and market demand.

Aterian chairperson Charles Bray will assume direct strategic responsibility for oversight and development of the group's trading activities, reflecting the increasing strategic importance and scale of trading.

Aterian CEO Simon Rollason will focus on advancing the group's exploration portfolio activities across Morocco, Botswana and Rwanda.

The company says the group's strategy remains focused on developing a diversified critical minerals business that balances exploration upside with scalable, cash-generative trading operations.

The company explains that trading operations offer Aterian shareholders reduced dilution risk; internal cash flow generation; an exploration funding source; critical minerals market intelligence; strategic counterparty relationships; and asset monetisation optionality.

Bray says this confidential agreement marks another important step in the expansion of Aterian's trading business in Rwanda and strengthens the company’s access to responsibly sourced strategic minerals, enhancing the company’s ability to increase supply volumes and deepen its participation in regional mineral trading flows.

“We believe the market has yet to fully recognise the strategic and financial value emerging within Eastinco's trading platform. We have built a fully compliant, revenue-generating business which offers shareholders tremendous upside potential,” he says.

He adds that the continued growth and development of Eastinco represent an increasingly important component of Aterian's broader strategy to build a diversified critical minerals business that combines exploration upside with cash-generative operating activities.

“I believe now is the appropriate time for me to increase my executive focus on the trading business and support the next stage of Eastinco's development. We continue to scale an exciting trading business model designed to create multiple value drivers for shareholders whilst maintaining capital discipline."

In conjunction with the shift in management strategic focus, Aterian notes that Eastinco has implemented several operational initiatives intended to support increased trading volumes and future growth.

This includes securing a new warehouse and operational facility in Kicukiro, Rwanda, covering about 500 m2 to increase operational capacity, logistics efficiency and inventory throughput; and the appointment of David Kayigire as the local head of trading and director of Eastinco, adding further local operational and commercial leadership capacity.

Other initiatives include expanding sourcing relationships and supplier networks to support increasing supply volumes across Eastinco's critical minerals trading activities; and strengthening the group's executive focus on the continued expansion of its commodity trading operations.

The new warehouse facility is expected to provide Eastinco with expanded storage, handling and operational capabilities, improving logistics efficiency and supporting increasing commodity throughput as trading activities continue to scale, with this agreement anticipated to potentially increase targeted trading revenues to the group by 50% before the year-end.

The company says Kayigire's appointment as head of trading reflects the group's continued investment in local operational capability and management infrastructure.

Aterian notes that he brings senior-level experience in trading, responsible mineral supply chain management, traceability systems and mineral sector operations in Rwanda, with a background spanning mineral sourcing, supply chain oversight and environmental studies.

The company says his experience is expected to support the company's focus on increasing supply volumes while maintaining high standards of responsible sourcing and traceability.

Kayigire will focus on strengthening sourcing networks, supplier relationships and increasing supply volumes as Eastinco continues to expand its trading activities.

Aterian says the group remains committed to maintaining high standards of supply chain integrity, responsible sourcing and mineral traceability through rigorous due diligence procedures, supplier verification, chain-of-custody controls and ongoing compliance oversight.

“Management believes strong governance and robust traceability frameworks are becoming increasingly important competitive differentiators as global demand for responsibly sourced critical minerals continues to grow,” the company says.