Aterian (LSE:ATN), the African-focused critical and strategic metals company, said its wholly owned Rwandan subsidiary Eastinco has begun trialling the trading of tungsten ore and concentrates.
Eastinco has historically traded tantalum-bearing concentrates, and the move into tungsten marks an attempt to broaden its established procurement network, responsible-sourcing procedures and international trading relationships into a new commodity.
The trial will run on a controlled, lot-by-lot basis, testing supplier performance, product specifications, pricing and traceability systems before any scale-up.
China supplied around 82% of mined tungsten in 2024, a concentration the company says creates supply risk for industries reliant on the metal, including cutting tools, electronics, aerospace and defence.
To fund the trial, Aterian intends to raise approximately £180,000 through a zero-coupon convertible loan note issued to existing long-term shareholders, converting into equity at 25p per share or automatically on 31 December.
CLN holders will also receive 300,000 warrants expiring 15 February 2028, exercisable at 32.5p with a 50p hard call.
Proceeds will fund operational systems and expanded premises to segregate and aggregate tungsten material for onward sale.
"Based on the margins currently indicated, we believe the potential profits available from tungsten trading fully justify the proposed £180,000 equity capital issue and should enable Eastinco to repay the Company's initial investment within a reasonably short timeframe," said Charles Bray, Aterian's chairman.
The company is also assessing copper, tin and beryllium as further commodities where Eastinco could deploy its trading platform.
News Intelligence what this means for the company
Aterian's Rwandan subsidiary Eastinco is launching a controlled trial of tungsten ore and concentrate trading, funded by a £180,000 convertible loan note from existing shareholders. The move extends Eastinco's established tantalum trading platform into a new commodity where China controls ~82% of global supply, testing supplier performance and traceability before any scale-up. Management believes the trial's projected margins justify the capital raise and should enable repayment within a short timeframe.
The trial is a low-risk extension of Eastinco's existing trading infrastructure into a commodity with genuine supply-chain concentration risk, but remains a pilot with no revenue yet. Success depends on execution of lot-by-lot testing and the margin assumptions management has cited; the £180,000 raise is immaterial relative to the company's scale, and the convertible terms (25p conversion, 32.5p warrants) do not signal distress, but the investment case turns on whether Eastinco can replicate its tantalum trading success in a new market.
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