REG - Firering Strategic - 4th Tranche Limeco Option Exercised & Ops Update

Firering Strategic MineralsAnnouncement

Wed 07:00

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RNS Number : 7606F  Firering Strategic Minerals PLC  27 May 2026

Firering Strategic Minerals plc / EPIC: FRG / Market: AIM / Sector: Mining

27 May 2026

Firering Strategic Minerals plc

("Firering" or the "Company")

 

Exercise of Fourth Tranche of Limeco Option & Operations Update

 

Firering increases Limeco stake to 41.7% as Limeco ramps up production,
improves unit economics, grows its customer base across Southern Africa and
achieves operational breakeven

 

Firering Strategic Minerals plc (AIM: FRG), an Africa-focused producer of
quicklime and explorer of critical minerals, is pleased to announce that it
has today exercised the fourth tranche of its option to acquire a further 5.5%
interest in Limeco Resources Limited ("Limeco"), increasing its total
shareholding to 41.7%. The exercise follows Limeco's achievement of
operational breakeven and reflects the Board's confidence in the project's
continued production ramp-up, improving cost performance, and rapidly
expanding customer base across the Southern African region.

 

OVERVIEW

Operations

·    Combined kiln discharge output averaging over 135 tonnes per day
("tpd") across the first 20 active days of May 2026. Both kilns achieved
record efficiency on 16 May 2026 (Kiln 1: 83.7%; Kiln 2: 79.4% and 78.95% on
20 May 2026).

·    Kiln 2 optimisation complete, operating above the initial 80 tpd
discharge target; Kiln 1 continues to operate at c.55 tpd

·    Syngas production (for firing the kilns) cost per tonne of saleable
product reduced by c.25% versus prior months, demonstrating continued progress
on unit economics.

·    Modifications to Kilns 3 and 4 progressing well, with commissioning
targeted for Q3 and Q4 2026 respectively, expected to substantially expand
overall production capacity

 

Commercial

·    Diversified product portfolio across quicklime (lumps, chips and
powder), hydrated lime (bulk, 1-tonne bags and 25kg bags) and aggregates,
serving customers across mining, industrial and agricultural sectors

·    Active customer base now spans Zambia, Zimbabwe and Malawi, including
supply to a leading copper producer in the Copperbelt, alongside regional
industrial and agricultural customers

·    Confirmed customer order pipeline of c.2,500 tonnes of pending
dispatches, in addition to ongoing discussions on medium- and longer-term
supply agreements with mining and industrial counterparties in the region

·    Aggregate business contributing meaningful incremental revenue, with
c.11,625 tonnes crushed in April 2026 and c.10,071 tonnes crushed
month-to-date in May 2026 (across 14 active crushing days through 20 May)

 

Corporate

·    Firering's interest in Limeco increased to 41.7% following exercise
of the fourth tranche of the Option, with one final tranche remaining to take
the holding to 45.0% by no later than 31 July 2026

 

Youval Rasin, Chairman and Interim Chief Executive Officer, commented: "The
exercise of the fourth tranche of the Limeco Option reflects the progress
being made at Limeco following the achievement of operational breakeven.
Production ramp-up continues, unit economics are improving and the customer
base is expanding across Zambia, Zimbabwe and Malawi. Increasing our
shareholding at this stage allows Firering and its shareholders to participate
more fully in Limeco's continued growth.

 

"The trajectory across both operations and commercial activity remains
positive, with further kiln capacity expected to come online later this year.
We remain focused on supporting continued operational growth, expanding the
order book and delivering value for shareholders."

 

DETAILS

Limeco Option

On 28 May 2024, Firering announced that it had entered into a share purchase
agreement with Clearglass Investments Limited ("Clearglass") and Kai Group
Ltd, the then sole shareholder of Limeco (the "Vendor"), to acquire an initial
20.5% interest in Limeco, the owner of an advanced limestone project located
approximately 22km west of Lusaka, Zambia (the "Project"). In addition,
Firering secured an option (the "Option")* to acquire a further 24.5% interest
in Limeco for aggregate consideration of US$4,650,000, which, if fully
exercised, would increase its total interest to 45.0%.

 

Firering has today exercised the fourth tranche of the Option to acquire a
further 5.5% interest in Limeco, taking its shareholding to 41.7%. In
accordance with the terms of the Option, the Company has made a payment of
US$981,667 in consideration for this tranche. One final tranche remains
outstanding, providing the Company with the right to acquire an additional
3.3% interest by no later than 31 July 2026 for consideration of US$1,033,333,
which would take Firering's total interest in Limeco to 45.0%.

 

Limeco Financials

In its most recent published accounts (financial year ended 31 December 2024),
Limeco posted a loss before tax of ZMW 222,443,499 (US$8,496,696†) on
turnover of ZMW 26,296,833 (US$1,004,463†). As at 31 December 2024, Limeco
had net liabilities of ZMW 2,867,291,084 (US$102,844,013‡). Liabilities
include ZMW 2,914,751,858 (US$104,546,336‡) due to shareholders (the
"Shareholders Loan"). Following the exercise of the fourth tranche of the
Option, Firering has increased its right to 41.7% (c.US$43.6m‡) of the
Shareholders Loan.

 

Notes:

* The Option was described as the "New Option" in the Company's notification
of 28 May 2024, which sets out further detail of the Share Purchase Agreement
and Option arrangements.

† at the exchange rate of Zambian Kwacha (ZMW) 26.18 : $1

‡ at the exchange rate of ZMW 27.88 : $1

 

ENDS

 

For further information visit www.fireringplc.com or contact:

 

 Firering Strategic Minerals                          E: info@firering-holdings.com

 Youval Rasin
 SPARK Advisory Partners Limited (Nominated Adviser)  T: +44 20 3368 3550

 Neil Baldwin / James Keeshan
 Shard Capital Partners LLP (Joint Broker)            T: +44 20 7186 9950

 Damon Heath / Erik Woolgar
 St Brides Partners Limited (Financial PR)            E: firering@stbridespartners.co.uk

 Isabel de Salis / Susie Geliher

 

Notes

Firering Strategic Minerals plc (AIM: FRG) is an Africa-focused producer and
developer of industrial and critical minerals. The Company's near-term focus
is the ramp-up of production at the Limeco project in Zambia, where Firering
holds a 41.7% interest with an option to increase this to 45%. Once fully
optimised, Limeco is expected to be among the largest lime operations in the
region, supplying a range of mining, agricultural and industrial customers.
Firering's portfolio also includes the highly prospective Atex
Lithium-Tantalum Project in northern Côte d'Ivoire.

 

 

 

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