REG - Firering Strategic - Funding & Quicklime Operations Update

Firering Strategic MineralsAnnouncement

29/07/2025 07:45

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RNS Number : 9640S  Firering Strategic Minerals PLC  29 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK
VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH
LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS
INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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

29 July 2025

Firering Strategic Minerals plc

("Firering" or "the Company")

 

Placing and Subscription to Raise £1.01m

& Quicklime Operations Update

 

Firering Strategic Minerals plc (AIM: FRG), an emerging producer of quicklime
and explorer of critical minerals, is pleased to announce a placing
("Placing") and subscription ("Subscription") of 67,333,335 new ordinary
shares of €0.001 each in the Company at an issue price of 1.5 pence ("Issue
Price") per Placing Share and Subscription Share to raise £1.01 million
(before expenses). Additionally, Firering is pleased to provide an update on
Limeco's operational progress.

 

The net proceeds raised from the Placing and Subscription, together with
internal funds, are expected to be sufficient to cover the cost of exercising
the first and second tranche payments of the Limeco Option (as detailed in the
notification of 4.31pm on 28 May 2024), which have exercise periods ending on
31 July 2025 and 30 October 2025 respectively. Exercise of these tranches of
the Option will increase Firering's interest in Limeco to 26.9% and 30.7%
respectively. Funds from the exercise will allow Limeco's operations to ramp
up ahead of the third tranche exercise period ending on 30 January 2026.

 

Following completion of the Placing and Subscription, Firering intends to
exercise its option over the first tranche by 31 July 2025, using proceeds of
the Placing and Subscription to fund the exercise consideration.

 

Discussions with a leading Zambian bank to raise debt funding to allow the
Company to further increase its stake in Limeco and refinance the Bridge Loan
(as notified on 15 November 2024) are progressing. This facility is expected
to be finalised once daily output at Limeco consistently meets required
levels.

 

Shard Capital Partners LLP ("Shard") is acting as sole broker in connection
with the Placing.

 

HIGHLIGHTS

·      Placing and Subscription to raise £1.01 million.

·      Funds raised sufficient to cover the first two tranches of the
New Option* payments, which will increase Firering's interest in Limeco to
30.7%, though only the first Tranche of $1,033,000 to acquire 6.4% to take the
Company's interest to 26.9% will be exercised by 31 July.

·      Debt facility discussions with Zambian bank to be finalised once
daily output consistently meets required levels.

·      Ongoing commissioning progress toward full-scale production
capacity of 600-800 tonnes per day ('tpd') of quicklime.

·      Infrastructure upgrades to Kiln 1 now in progress following 70
consecutive days of uninterrupted production from 10 May 2025.

·      Gasifier and water purification plant performing reliably since
commissioning in February 2025, with no downtime.

·      Refurbishment of Kiln 2 commenced in July 2025, with hot
commissioning on track for end-Q3/early Q4; Kilns 3 and 4 to follow.

·      First sale completed in June 2025, with follow-on demand
highlighting the importance of bringing the remaining seven kilns online in a
timely manner.

 

*as detailed in the Company's notification of 28 May 2024

 

Yuval Cohen, Chief Executive Officer of Firering, commented: "We are pleased
to have completed this placing and subscription, which was largely supported
by existing shareholders who recognise the value of our investment in the
exciting Limeco quicklime project. Their backing reflects growing confidence
in Limeco's ambition to become a leading regional producer of quicklime, a
critical input for the copper sector and broader industrial markets across
Southern and Central Africa.

 

"Since refiring Kiln 1 on 10 May 2025, we achieved 70 consecutive days of
uninterrupted production, our longest continuous run to date. During this
period, we identified several opportunities to increase daily output. A recent
short downtime window is now being used to implement various upgrades,
including the installation of a more powerful suction fan motor to improve
calcination efficiency and overall productivity. Accordingly, Kiln 1 is
expected back online in early August.

 

"Additionally, renovation work on Kiln 2 is now underway and will incorporate
a range of enhancements to support a smooth and efficient start-up. This is a
key priority, particularly in light of the strong market demand evidenced by
follow-on enquiries since our first sales in June, which have already exceeded
our current production capacity."

 

BACKGROUND TO AND REASONS FOR THE PLACING AND SUBSCRIPTION

 

On 28 May 2024, Firering announced that it had entered into a share purchase
agreement to acquire an initial 20.5% of Limeco Resources Limited ("Limeco"),
the owner of an advanced limestone project ("the Project") located 22km west
of Lusaka in Zambia. Additionally, it was granted an option to acquire a
further 24.5% interest in Limeco for an aggregate consideration of
US$4,650,000 ("Option") to take its interest in Limeco to 45%.

 

Having completed the acquisition of the initial 20.5% of Limeco, Firering's
Option is exercisable in 5 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.

 

It was intended that a loan with a leading Zambian bank would pay for the
additional acquisition of interests in Limeco and in this regard discussions
have been ongoing (see RNS dated 15 November 2024). However, as consistent
daily output and commercial sales from Kiln 1 have been slower than
anticipated, the financing is still in the process of being finalised.
Accordingly, Firering has decided to raise funds via a Placing and
Subscription to ensure that it has the funding available to allow it to
complete the 31 July 2025 and 30 October 2025 exercise payments as per the
Option, to take its interest in Limeco to 30.7%.

 

Limeco Operations Update

Limeco was initially established by Glencore plc due to the shortage of
quicklime in Zambia and the need for quicklime at its Mopane operations in
Zambia. In total, over $US100m had been invested in establishing the limestone
quarry and constructing the current lime plant.  The lime plant consists of a
two stage crushing circuit with an installed primary throughput of 300tph of
limestone, and a quicklime production unit comprising eight kilns for burning
crushed limestone to produce between 600 and 800 tonnes of quicklime per day.

 

Having commenced an optimisation programme in 2024, Limeco fired the first of
its two gasifiers in February 2025, along with the first of eight kilns.

 

During the initial ramp-up of Kiln 1, Limeco encountered some operational
challenges, notably blockages, referred to as hangups or ring formations,
along the kiln's refractory lining. These are common in lime kiln operations
and can lead to unplanned downtime for their removal. Contributing factors
typically include feed particle size and moisture content, the generation of
fine quicklime powder, and the level of process control.

 

While such issues are inherent to lime production, they can be effectively
mitigated through stringent management of feedstock quality and tight control
of operating parameters. In line with this, drawing on early operational
experience, the Limeco team has implemented a series of targeted improvements
over the past few months. These include optimising feedstock size and
cleanliness, as well as refining process control procedures, particularly
those related to the early detection and efficient resolution of blockages. As
a result, Kiln 1 consistently produced commercial grade quicklime reaching up
to circa 40tpd from 10 May 2025 to 19 July 2025.

 

To increase output, Limeco plans to upgrade the Variable Speed Drive ("VSD")
and Induced Draft ("ID") fan motor to higher-capacity units. A recent short
downtime window is now being used to implement various upgrades, positioning
Kiln 1 for stronger performance. The Company expects Kiln 1 to be back in
operation at the beginning of August.

 

Elsewhere on site, the gasifier and water purification plant have both
performed reliably and continuously since commissioning in February 2025,
meeting operational expectations without incident.

 

Refurbishment work on Kiln 2 began in July 2025, with hot commissioning
scheduled by the end of Q3 2025/early Q4 followed by Kilns 3 and 4. These
renovations will incorporate the learnings and recommendations of Limeco's
operational team to ensure a smooth and efficient ramp-up across all units.

 

In June 2025, Limeco completed its first commercial sale: 90 tonnes of
quicklime lumps were delivered to a buyer for use by a client in Zimbabwe.
Positive feedback from the client has since led to further inquiries. As this
exceeds the current daily output from Kiln 1, it underscores the importance of
bringing the remaining seven kilns online in a timely manner to meet growing
demand and capitalise on emerging market opportunities.

 

Sales of aggregates and ancillary products continue to contribute additional
revenue, further strengthening Limeco's operational foundation.

 

DETAILS OF THE PLACING AND SUBSCRIPTION

 

Placing

An engagement letter has been entered into by the Company and Shard. The
Placing has raised, in aggregate, gross proceeds of £715,000 through the
placing of 47,666,669 new Ordinary Shares to certain investors at a price of
1.5 pence per share. The Placing Price represents a discount of approximately
1.7 per cent. to the Closing Price of 1.525 pence per Ordinary Share on 28
July 2025, being the latest practicable business day prior to this
announcement.

 

The Placing is conditional upon Admission of the Placing Shares to trading on
AIM by 15 August 2025.

 

Subscription

The Company has raised £355,000 through the subscription whereby various
investors have subscribed directly with the Company for 23,666,665 new
ordinary shares at the Issue Price of 1.5 p per share.

 

The Subscription is conditional upon Admission of the Subscription Shares to
trading on AIM by 15 August 2025.

 

In aggregate the Company has raised £1.01m gross (£982,000 net) in the
Placing and Subscription.

 

Use of Proceeds

The net proceeds of the Placing and Subscription will be used, together with
existing cash resources, to settle the consideration due to exercise the first
tranche of the Option by 31 July 2025. The balance of the proceeds will be
used in due course to exercise the consideration due to exercise the second
tranche of the Option by 30 October 2025, and for general working capital
purposes.

 

Directors' participation in the fundraising

 

The Company's Chairman, Youval Rasin, and director Shai Kol have each
indicated their intention to subscribe for up to £125,000 and £50,000 of
shares in the Company respectively on the same terms as placees.

 

However, the Company is currently in a close period pending the publication of
the Operations Update detailed in this notification. A further announcement
regarding participation by Mr Rasin and Mr Kol in the fundraising is expected
to be made in due course. Such subscriptions will be treated as related party
transactions under AIM Rule 13 of the AIM Rules for Companies.

 

Issue of Shares to Advisors

The Company has issued 1,020,000 new Ordinary Shares ("Advisor Shares") to
Shard, at an issue price of 1.5p per share, as part of their fee arrangements.

 

Issue of Warrants

The Company has conditionally issued 2,040,000 warrants ("Warrants") to
subscribe for ordinary shares to Shard, subject to Admission, as part of their
fee arrangements. The warrants have an exercise price of 1.5 pence per share
and an exercise period ending 3 years from the date of Admission.

 

Admission

Application will be made shortly to the London Stock Exchange plc for the
Placing Shares,  the Subscription Shares and the Advisor Shares to be
admitted to trading on AIM ("Admission"). It is expected that Admission will
become effective and that dealings in the Placing Shares, Subscription Shares
and the Advisor Shares on AIM will commence at 8:00 a.m. on or around 1 August
2025.

 

Total voting rights

On Admission, the Company's issued ordinary share capital will consist of
311,720,960 Ordinary Shares, with one vote per share. The Company does not
hold any Ordinary Shares in treasury. Therefore, on Admission, the total
number of Ordinary Shares and voting rights in the Company will be
311,720,960. With effect from Admission, this figure may be used by
shareholders in the Company as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.

 

*** 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
 Optiva Securities Limited (Joint Broker)             T: +44 20 3137 1903

 Christian Dennis / Daniel Ingram
 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, where it
holds a 20.5% interest 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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