REG - Firering Strategic - Exercise of first tranche of Limeco Option

Firering Strategic MineralsAnnouncement

31/07/2025 07:01

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RNS Number : 2786T  Firering Strategic Minerals PLC  31 July 2025

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

31 July 2025

Firering Strategic Minerals plc

("Firering" or "the Company")

 

Exercise of first tranche of Limeco Option

 

Interest in quicklime producer increased to 26.9%

 

Firering Strategic Minerals plc (AIM: FRG), an emerging producer of quicklime
and explorer of critical minerals, confirms that it has exercised the first
tranche of the Option* to acquire a further 6.4% shareholding in Limeco
Resources Limited ("Limeco"), taking the Company's shareholding in Limeco to
26.9%.

 

Yuval Cohen, Chief Executive Officer of Firering, commented: "We are very
pleased to have increased our stake in Limeco, which continues to make solid
operational progress. With the quicklime market remaining buoyant and
fundamentals strong, this further investment underscores our confidence in the
project's long-term value and our strategy to become a key player in the
space."

 

Background

On 28 May 2024, Firering announced that it had entered into a share purchase
agreement, together with Clearglass Investments Limited ("Clearglass") and Kai
Group Ltd, the then sole shareholder of Limeco ("Vendor"), to acquire an
initial 20.5% of Limeco, the owner of an advanced limestone project ("the
Project") located 22km west of Lusaka in Zambia. Additionally, Firering was
granted an option (as set out below) to acquire a further 24.5% interest in
Limeco for an aggregate consideration of US$4,650,000 ("Option") to
potentially take its interest in Limeco to 45%.

 

Having completed the acquisition of the initial 20.5% of Limeco, Firering's
Option is exercisable in five tranches between July 2025 and July 2026 as
follows:

 

·      an option to acquire a 6.4% interest no later than 31 July 2025
for a payment of US$1,033,333;

·      an option to acquire a 3.8% interest no later than 30 October
2025 for a payment of US$620,000;

·      an option to acquire a 5.5% interest no later than 30 January
2026 for a payment of US$981,667;

·      an option to acquire a 5.5% interest no later than 30 April 2026
for a payment of US$981,667; and

·      an option to acquire a 3.3% interest no later than 31 July 2026
for a payment of US$1,033,333.

 

Exercise of first tranche of the Option

Firering has today notified the Vendor of its intention to exercise the first
tranche of the Option to acquire a further 6.4% interest in Limeco. On
completion, this will take the Company's shareholding in Limeco to 26.9%.

 

In accordance with the terms of the Option, the Company is required to make a
payment of US$1,033,333 in consideration for this tranche. The payment will be
satisfied using a combination of the Company's existing cash resources and the
proceeds of its recently announced fundraisings. While the Option has been
exercised, completion of this share acquisition will occur once the payment
has been settled in full.

 

Limeco

In its most recent published accounts (financial year ended 31 December 2024),
Limeco posted a loss before tax of ZMW 222,443,499 (€7,851,871†) on
turnover of ZMW 26,296,833 (€928,233†). As at 31 December 2024, Limeco had
net liabilities of ZMW 2,867,291,084 (€98,872,106‡). Liabilities include
ZMW 2,914,751,858 (€100,508,685‡) due to shareholders ("Shareholders
Debt"). Following the exercise of the first tranche of the Option, Firering
will increase its right to 26.9% (c€27.04m‡) of the Shareholders Debt.

 

An update on operations at Limeco was notified by the Company at 10.13 a.m. on
30 July 2025.

 

Notes

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

† at the exchange rate of Zambian Kwacha (ZMW) 28.33 : €1

‡ at the exchange rate of ZMW 29.0 : €1

 

*** ENDS ***

 

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

 

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

 Yuval Cohen
 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 / Seb Weller

 

Notes

Firering Strategic Minerals plc (AIM: FRG) is an emerging producer of
quicklime and explorer of critical minerals. The Company is currently focused
on ramping up production at the Limeco quicklime project in Zambia, in which
it holds a 26.9% interest (following the exercise of option detailed in this
notification) with an option to increase this to 45%. Targeting daily output
of 600-800 tonnes, Limeco is well positioned to supply copper producers
operating within the Central African Copperbelt and other regional industries
that currently rely on imported quicklime from South Africa. Additionally,
Firering is progressing the Atex Lithium-Tantalum Project in northern Côte
d'Ivoire, a highly prospective asset with significant lithium and
tantalum-niobium potential, supporting the global shift to clean energy
technologies.

 

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