(Alliance News) - Aterian PLC on Wednesday said it is well-placed to drive revenue growth, as its subsidiary signed an off-take agreement with a "major" international trading house.

The investment company focused on African mineral resources said its Rwandan subsidiary Eastinco Ltd signed an off-take deal with a trading house, allowing for the sale and distribution of Eastinco's tantalum-niobium and tin concentrate secured from Rwandan-based artisanal and small scale mining.

Aterian said in connection with the deal, it signed terms for a USD1.0 million secured trade finance debt facility with a financial investor. It is a five-month revolving debt facility with a 14.4% annual interest rate.

"The facility will provide the company with the necessary working capital requirements for trading operations, ensuring seamless execution and operational efficiency. Confidentiality has been agreed amongst the parties to protect our mutual commercial interests," Aterian said.

Chair Charles Bray said: "We are well-positioned to scale our operations and drive revenue growth along with the margins from trading. This 'fourth leg' of our strategy has been long in the making, but we have been determined to do it in a manner which takes minimal risk while delivering revenue in a fully traceability-compliant model. Ultimately, we aspire to have trading generate the revenue to support our advancing exploration efforts in Rwanda, Morocco, and Botswana.

"We believe these strategic partnerships in trading will supplement and contribute to our strategic exploration partnerships and the long-term success and sustainability of Aterian."

Aterian shares were up 2.1% to 59.75 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

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