REG - Firering Strategic - Interim Results
27/09/2023 07:00
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RNS Number : 7491N Firering Strategic Minerals PLC 27 September 2023
Firering Strategic Minerals plc / EPIC: FRG / Market: AIM / Sector: Mining
27 September 2023
Firering Strategic Minerals plc
("Firering" or "the Company")
Interim Results
For the Six Months Ended 30 June 2023
Firering Strategic Minerals plc, an exploration company focusing on critical
minerals, is pleased to announce its interim results for the six months ended
30 June 2023.
Corporate and Operational Highlights
· Start of Phase II soil sampling programme at its Atex
Lithium-Tantalum Project ("Atex") in conjunction with Joint Venture partner,
Ricca Resources Limited ("Ricca") following its US$18.6 million investment in
Atex.
· Increased stake in Atex to 90% following successful Phase I drilling
campaign and the start of the soil sampling programme in January 2023. In
addition, we hold 51% of the adjacent Alliance mining application.
· Successful completion of Phase II soil sampling programme
· Start of Phase II auger drilling programme in three target areas
identified from Phase II soil sampling programme:
o Detailed geological mapping and soil sampling provide evidence of an
enlarged pegmatite field.
o Initial 11,000m of Phase II auger drilling planned.
Post Period Highlights
· Option deed secured to acquire up to 28.33% of Limeco Resources
Limited ("Limeco") owner of ex-Glencore Limestone Project in Zambia (announced
on 17 August 2023):
o Limeco is expected to be profitable and delivering cashflow within 12 - 24
months.
o Strategy is to pay dividend to shareholders as soon as possible.
o US$100 million spent historically on the lime plant by Glencore.
o Estimated resource* of 73.7Mt @ 95.3% CaCO(3) and an estimated limestone
stockpile of 190,000 tonnes, which will be used to start production.
o Commissioning of the crushing plant to produce aggregates and accelerate
cashflow ahead of kiln modifications and plant commissioning.
· A total of nine target areas were identified at Atex, including six
new pegmatite zones, and have been geologically mapped in detail.
· Completion of Part 1 of Phase II Auger drilling:
o 1,039 holes were drilled for a total of 6,015 metres with an average depth
of hole of 5.79m.
· Completion of an oversubscribed placing raising £756,000 to support:
o Further definition of identified pegmatite targets with c.5,000m auger
drilling campaign (Part 2 of Phase II) at Atex;
o The commencement of a 3,000 metre Reverse Circulation ("RC") drilling
campaign to better define the pegmatites identified during the auger drilling
in terms of mineralisation, size and orientation (see Figure 1 drilling plan
below);
o Complete the Laser Induced Breakdown Spectrometry ("LIBS") test work on
the remaining c. 50% of the soil samples; and
o Gradual modifications of the eight kilns at the lime plant in Zambia, with
the first two kilns expected to be commissioned during Q1 2024.
Commenting on the results, Yuval Cohen, Chief Executive of Firering, said:
"Our strategy has always been to increase shareholder value through the
continued exploration of our flagship asset, Atex. To this end, and with the
support of our JV partner, Ricca Resources, we spent a significant amount of
time in the field since the start of 2023. Positive results from our Phase
II soil sampling programme identified multiple target areas for further
exploration and were pivotal in our decision to increase our stake in Atex
from 77% to 90% and our consequent Phase II auger drilling campaign. After the
period, and supported by the positive results from Part 1 of the Phase II
auger drilling campaign, we announced our intention to start a 3,000m RC
drilling campaign at Atex, which we believe has the potential to become a
significant lithium producer in Côte d'Ivoire.
"Post period, activity levels further increased and we are delighted to have
agreed an option agreement with Limeco Resources, which owns a limestone
project in Zambia. The project, previously owned by Glencore who invested
US$100 million, has the potential to transform Firering into a cash generative
business in a relatively short space of time.
To support this forward momentum, we raised £756,000 post period end in an
oversubscribed placing, which will enable us to conduct further auger and RC
drilling work at Atex, with the objective of increasing our understanding of
the existing and newly identified pegmatites in terms of mineralisation, size
and orientation, and support the kiln modifications at the lime plant in
Zambia."
Figure 1: Plan view showing 2022 DD holes in black and planned 2023 RC holes
in blue.
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.
*** ENDS ***
For further information and updates on Firering's exploration programme, visit
www.fireringplc.com or contact the following:
Firering Strategic Minerals Tel: +44 20 7236 1177
Yuval Cohen
SPARK Advisory Partners Limited Tel: +44 20 3368 3550
Nominated Adviser
Neil Baldwin / James Keeshan / Adam Dawes
Optiva Securities Limited Tel: +44 20 3137 1903
Broker
Christian Dennis / Daniel Ingram
St Brides Partners Limited T: +44 20 7236 1177
Financial PR E: firering (mailto:firering@stbridespartners.co.uk) @stbridespartners.co.uk
(mailto:firering@stbridespartners.co.uk)
Ana Ribeiro / Susie Geliher / Isabelle Morris
Chairman's Statement
I am pleased to report a busy half-year with significant operational
achievements during the six months to 30 June 2023.
Operational Update
The Company's focus at the start of 2023 was to continue to accelerate
exploration at its flagship lithium and tantalum project - Atex, following the
success of the first phase of diamond drilling campaign in 2022. To this
end, in January 2023, Firering announced the start of a Phase II soil sampling
programme. The programme was undertaken in conjunction with Ricca Resources
Limited ("Ricca") following its US$18.6 million investment to advance Atex to
a Definitive Feasibility Study ("DFS") level. A total of 14,116 soil samples
were taken, prepared, and sent to Ghana for portable x-ray fluorescence
spectrometry ("pXRF") and Laser Induced Breakdown Spectrometry ("LIBS")
analysis. Several new pegmatite related anomalies were identified, which
provided vital information for the next stage of the Company's auger drilling
campaign.
Plans to start the next auger drilling programme were announced on 23 June
2023. Nine target areas were identified during the Company's Phase II soil
sampling programme with several lithium in soil anomalies occurring adjacent
and along similar orientations, to Spodumene Hill where previous drilling
returned significant intersections, including an oblique intersection with an
apparent width of 64m at 1.24% Li(2)O and 25m at 1.39% Li(2)O (refer the
Company's notification of 15 November 2022 and 15 December 2022).
Phase II of the Atex soil sampling programme commenced on 9 January 2023 and
was completed on 11 May 2023. Post the reporting period, on 11 July 2023,
the Company announced that its Phase II Auger Drilling campaign had started
successfully in late June. The campaign was undertaken in conjunction with
Ricca and a total of 1039 holes were drilled as of 8 July 2023 for a total of
6,015m of drilling, resulting in an average hole depth of 5.79m. Nine
priority targets were identified as a result of a very successful soil
sampling programme, which included six new pegmatite zones that were the focus
of Part 1 of the Phase II auger drilling campaign (announced on 20 September
2023).
In conjunction with Ricca, the Company is planning to start its first Reverse
Circulation ("RC") drilling campaign at Atex in Q4 2023. A total of c.3,000m
of drilling is planned to further test the pegmatite zones for mineralisation,
orientation and dip.
In August 2023, the Company announced an option agreement for Firering to
acquire 28.33% in Glencore's previous limestone project in Zambia, fromLimeco
Resources Limited ("Limeco"), the current owner of the project, for US5.1
million. Limeco has an estimate resource* of 73.7Mt @ 95.3% CaCO3 and is
expected to be profitable and delivering cashflow within 12-24 months.
It is estimated that Glencore invested approximately US$100 million in Limeco
to establish the limestone quarry and construct the current lime plant, which
would be used to produce quicklime for Mopane Copper Mine in Zambia.
Limestone production from the quarry commenced in March 2016 and ceased in
January 2017 following the sale of Mopane Copper Mine to ZCCM Investment
Holdings plc.
On 30 August 2023, the Company announced commissioning of the crushing plant
at Limeco, which. The crushing plant has been adapted to produce aggregate
from the estimated 250,000 tonnes of waste rock material on site, which will
enhance Limeco's cashflow during the upgrade and modifications of the kilns.
Firering's team is assisting the local technical team with the gradual
modifications of the eight kilns with the first two kilns expected to be
commissioned during Q4 2023. We are also encouraged by the ongoing offtake
discussions that Limeco has entered into with major copper producers that use
quicklime in their copper flotation process.
Financial
The Company did not generate revenue during the period. Instead, it focussed
on exploration and developing assets that the Board believes will generate
revenue for the Company in the future.
For the six-month period ending 30 June 2023, the Company reports a pre-tax
loss of €0.6m (six months ended 30 June 2022: pre-tax loss of €0.5m).
The Company's net cash balance as of 30 June 2023 was €0.3m. The Company
successfully raised £756,000 (gross) through an oversubscribed placing of
11,630,769 new Ordinary Shares to certain investors at a price of 6.5 pence
per share as notified on 21 September 2023.
Outlook
It is an exciting time for Firering as we continue to advance the Atex project
in Côte d'Ivoire and evaluate the possibility of becoming a revenue
generating Company through our option in Limeco. Following the
oversubscribed placing announced on 21 September 2023, we have sufficient
funds to continue with our exploration activities at Atex, which we see as
paramount to our long-term value proposition, alongside the management support
we can offer to Limeco.
We look forward to the next six months, which we believe will be highly value
accretive for our Company.
On behalf of the entire Board, I would like to take this opportunity to thank
our existing shareholders for their continued support and welcome our new
shareholders.
Youval Rasin
Non-Executive Chairman
26 September 2023
*The non-JORC compliant resource is based on all available drilling data as at
August 2017. The Mineral Resources estimates are at this stage reported as an
in situ Mineral Resources estimate only, as further work is required in order
to be able to report the Mineral Resources estimates in accordance with the
guiding principles and minimum standards set out in the 2012 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves" (the JORC Code) and the Company's internal estimates, which are
also not JORC compliant, are still subject to verification, validation, and
external review; accordingly, such numbers are provided for guidance only.
There can be no guarantee the final JORC-compliant resource estimate will
reconcile with these early-stage calculations.
The Company intends to commission a JORC compliant report when operations
have been fully commissioned.
Copies of the Half Year Report are available on the Company's website
www.fireringplc.com
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2023 2022
Unaudited Audited
Euros in thousands
ASSETS
CURRENT ASSETS:
Cash and cash equivalents 326 1,184
Other receivables 35 32
Total current assets 361 1,216
NON-CURRENT ASSETS:
Other receivables 637 637
Investment in joint venture 1,866 2,073
Intangible assets 1,276 1,276
Property, plant and equipment 143 166
Total non-current assets 3,922 4,152
Total assets 4,283 5,368
The accompanying notes form an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
30 June 31 December
2023 2022
Unaudited Audited
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade payables 71 61
Other payables 123 451
Capital note 174 214
Total current liabilities 368 726
NON-CURRENT LIABILITIES:
Accrued severance pay, net 8 8
Capital notes 594 565
Loan from non-controlling interest in subsidiary 122 103
Total non-current liabilities 724 676
Total liabilities 1,092 1,402
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY:
Share capital 87 87
Share premium 7,057 6,967
Warrants 20 20
Accumulated deficit (3,670) (3,057)
Capital reserve (294) (51)
3,200 3,966
Non-controlling interests (9) -
Total equity 3,191 3,966
Total liabilities and equity 4,283 5,368
The accompanying notes form an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Six months ended Year ended
30 June 31 December
2023 2022 2022
Unaudited Audited
Euros in thousands
(Except per share amounts)
Gain on earn-in arrangement - 1,614
General and administrative expenses (564) (415) (1,504)
Operating income / (loss) (564) (415) 110
Financial expenses (38) (102) (290)
Loss before taxes on income (602) (517) (180)
Share of loss of joint venture 20 - -
Net loss (622) (517) (180)
Other comprehensive loss - - -
Total comprehensive loss (622) (517) (180)
Net loss attributable to:
Equity holders of the Company (613) (517) (84)
Non-controlling interests (9) - (96)
(622) (517) (180)
Total comprehensive loss attributable to:
Equity holders of the Company (613) (517) (84)
Non-controlling interests (9) - (96)
(622) (517) (180)
Loss per share (in Euro) - basic and diluted (0.01) (0.01) (0.00)
The accompanying notes form an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
Share Share premium Warrants Reserves Accumulated deficit Total Non- Total
capital controlling interests equity
Unaudited
Euros in thousands
As at 1 January 2023 (audited) 87 6,967 20 (51) (3,057) 3,966 - 3,966
Loss for the period (613) (613) (9) (622)
Issue of shares to employees and consultants 90 90 90
Capital reserve arising from transaction with non-controlling interest in (243) (243) (243)
joint venture
As at 30 June 2023 87 7,057 20 (294) (3,628) 3,200 (9) 3,191
Attributable to equity holders of the Company
Share Share premium Warrants Reserves Accumulated deficit Total Non- Total
capital controlling interests equity
Unaudited
Euros in thousands
As at 1 January 2022 (audited) 87 6,878 20 327 (2,973) 4,339 243 4,582
Loss for the period - - - - (517) (517) - (517)
Payment on account of acquisition of non-controlling interests - - - - - - (61) (61)
As at 30 June 2022 87 6,878 20 327 (3,490) 3,822 182 4,004
The accompanying notes form an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to equity holders of the Company
Share Share premium Warrants Reserves Accumulated deficit Total Non- Total
capital controlling interests equity
Audited
Euros in thousands
As at 1 January 2022 87 6,878 20 327 (2,973) 4,339 243 4,582
Loss for the year )84) (84) (96) (180)
Acquisition of non-controlling interests - 89 - (378) - (289) (31) (320)
Change in non-controlling interests arising from deconsolidation - - - - - - (116) (116)
As at 31 December 2022 87 6,967 20 (51) (3,057) 3,966 - 3,966
The accompanying notes form an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
2023 2022 2022
Unaudited Audited
Euros in thousands
Cash flows from operating activities:
Net loss (622) (517) (180)
Adjustments to the profit or loss items:
Gain on earn-in arrangement - (977)
Depreciation 23 - 47
Share of loss of joint venture 20 - -
Accrued interest on capital note and loans from non-controlling interest in 35 32 75
subsidiary
Decrease (increase) in other receivables (3) - (147)
Increase (decrease) in other payables (265) (19) (637)
Increase (decrease) in trade payables 10 (87) (89)
Increase (decrease) in liability to non-controlling interest in subsidiary - 16 369
Increase (decrease) in severance pay - (8) -
Net cash used in operating activities (802) (583) (1,539)
Cash flows from investing activities:
Net cash outflow from acquisition of subsidiaries - (15) -
Proceeds from sale of control rights in subsidiaries - 977
Decrease in cash upon deconsolidation of subsidiaries, - (33)
net
Additions to property, plant and equipment - (20) (20)
Investment in affiliate (56) - -
Decrease in deposits - 13 -
Additions to intangible assets - (640) (1,265)
Net cash used in investing activities (56) (662) (341)
Cash flows from financing activities:
Cash paid for acquisition of non-controlling interest - - (320)
Advance on account of acquisition of non-controlling interests - (61) -
Net cash used in financing activities - (61) (320)
Net change in cash and cash equivalents (858) (1,306) (2,200)
Cash and cash equivalents at beginning of period 1,184 3,384 3,384
Cash and cash equivalents at end of period 326 2,078 1,184
The accompanying notes form an integral part of the interim consolidated
financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six months ended Year ended
30 June 31 December
2023 2022 2022
Unaudited Audited
Euros in thousands
Supplemental disclosure of non-cash activities:
Non-current receivable in respect of earn-in arrangement - - 637
Issuance of shares in consideration for conversion of convertible loan notes - - 637
- -
Issue of shares to non-controlling interests as part of share swap - - 89
Issue of shares to employees and consultant 90 - -
The accompanying notes form an integral part of the interim consolidated
financial statements.
NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1:- GENERAL INFORMATION
a. Firering Strategic Minerals PLC (the "Company") is a holding
company for a group of exploration and development companies set up to focus
on developing assets towards the ethical production of critical metals. The
Company was incorporated on 8 May 2019 in Cyprus. The address of its
registered office is Ioanni Stylianou 6, 2(nd) Floor, Office 202, 2003,
Nicosia, Cyprus.
In November 2021 the Company completed its Initial Public
Offering and admission to trading on the AIM, a market operated by the London
Stock Exchange.
The Company owns 75% of the issued share capital of Bri Coltan SARL ("Bri
Coltan") a company incorporated in Cote d'Ivoire. The principal activity of
the subsidiary is the exploration and development of mineral projects (in
particular, columbite- tantalite).
As more fully described in Notes 1, 6 and 19 to the 2022 annual consolidated
financial statements, the Company has an investment in a joint venture,
Marvella SA ("Marvella"), which was originally established as an SPV. The
Company is in the administrative process of implementing transfers to Marvella
of its investments in the following entities:
(i) 90% of the issued share capital of Atex Mining Resources SARL ("Atex") a
company incorporated in Cote d'Ivoire. The principal activity of Atex is the
exploration and development of mineral projects (in particular, lithium and
columbite-tantalite).
(ii) 51% of the issued share capital of Alliance Minerals Corporation SARL
("Alliance"), a company incorporated in Cote d'Ivoire. Alliance holds an
exploration license request at an area bordering Atex.
In November 2022 the Company signed an earn-in agreement with Ricca Resources
Pty Limited ("Ricca"), an Australian diversified minerals company to advance
the Atex Lithium-Tantalum Project and the adjacent Alliance exploration
licence (once granted). According to the agreement, Ricca will have the
exclusive right to undertake and fund at Ricca's sole cost the exploration of
the Atex Project and adjacent Alliance licence, which exploration is to be
undertaken through Marvella.
The Company holds 100% of the equity interest of Marvella as of the date of
the financial statements and will continue to hold the majority of the equity
interest until the completion of stage 4 of the earn-in period. However,
according to the shareholders' agreement signed with Ricca, the Company and
Ricca have joint control of Marvella. Accordingly, the investment in Marvella
is considered a joint venture which is accounted for using the equity method.
b. Going concern:
The Board of Directors and Group management have assessed the ability of the
Group to continue as a going concern. In respect of its mineral projects,
funding has been obtained as follows:
Atex and Alliance
As described in Note 1a. above, in 2022 the Company signed an earn-in
agreement with Ricca which has agreed to fund at its sole cost the two
exploration projects of Marvella for a period that may extend to 4-5 years
from the reporting date.
Subsequent to 30 June 2023, the Company was informed that Ricca is evaluating
various alternatives to raise additional funds in order to continue its
funding of Marvella's mining activities.
Bri Colton
As described in Note 7 to the annual consolidated financial statements, in
2022 the Company has been provided with a long-term credit facility of up to
€ 7.16 million which is intended be used to develop this project, with the
objective of obtaining further funding.
The Group's mining operations are at an early stage of development and the
continuing success of the Group will depend on the Group's ability to manage
its mineral projects. Presently, the Group has no projects producing positive
cash flow and the Group is likely to remain cash flow negative in the near
future. The Group's ultimate success will depend on its ability to generate
positive cash flow from active mining operations in the future and its ability
to secure external funding for its development requirements. However, there is
no assurance that the Group will achieve profitability or positive cash flow
from its operating activities.
As more fully described in Note 5, in September 2023 the Company completed a
Placing of Ordinary shares with total gross cash proceeds of £756,000 (c.
€870,000).
Based on a review of the Group's budget and forecast cash flows including the
proceeds of the Placing described above, there is a reasonable expectation
that the Group will have adequate resources to continue in operational
existence and meet its obligations as they become due for at least a period of
twelve months from the date of approval of the financial statements. Thus, the
going concern basis of accounting has continued to be applied in preparing
these financial statements.
c. These financial statements have been prepared in a condensed
format as of 30 June 2023 and for the six months then ended ("interim
consolidated financial statements"). These financial statements should be read
in conjunction with the Company's annual financial statements as of
31 December 2022 and for the year then ended and accompanying notes ("annual
consolidated financial statements").
NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of the interim consolidated financial statements:
The interim consolidated financial statements have been prepared in accordance
with IAS 34, "Interim Financial Reporting".
The accounting policies adopted in the preparation of the interim consolidated
financial statements are consistent with those followed in the preparation of
the annual consolidated financial statements, except as described in Note 3
below.
NOTE 3:- INITIAL APPLICATION OF AMENDMENTS TO FINANCIAL REPORTING
STANDARDS
1. Amendment to IAS 8, "Accounting Policies, Changes to Accounting
Estimates and Errors":
In February 2021, the IASB issued an amendment to IAS 8, "Accounting Policies,
Changes to Accounting Estimates and Errors" ("the Amendment"), in which it
introduces a new definition of "accounting estimates".
Accounting estimates are defined as "monetary amounts in financial statements
that are subject to measurement uncertainty". The Amendment clarifies the
distinction between changes in accounting estimates and changes in accounting
policies and the correction of errors.
The Amendment is to be applied prospectively for annual reporting periods
beginning on or after January 1, 2023 and is applicable to changes in
accounting policies and changes in accounting estimates that occur on or after
the start of that period.
The application of the Amendment did not have a material impact on the
Company's interim financial statements.
NOTE 3:- INITIAL APPLICATION OF AMENDMENTS TO FINANCIAL REPORTING
STANDARDS (Cont.)
2. Amendment to IAS 12, "Income Taxes":
In May 2021, the IASB issued an amendment to IAS 12, "Income Taxes" ("IAS
12"), which narrows the scope of the initial recognition exception under IAS
12.15 and IAS 12.24 ("the Amendment").
According to the recognition guidelines of deferred tax assets and
liabilities, IAS 12 excludes recognition of deferred tax assets and
liabilities in respect of certain temporary differences arising from the
initial recognition of certain transactions. This exception is referred to as
the "initial recognition exception". The Amendment narrows the scope of the
initial recognition exception and clarifies that it does not apply to the
recognition of deferred tax assets and liabilities arising from transactions
that are not a business combination and that give rise to equal taxable and
deductible temporary differences, even if they meet the other criteria of the
initial recognition exception.
The Amendment is effective for annual reporting periods beginning on or after
January 1, 2023. In relation to leases and decommissioning obligations, the
Amendment is applied commencing from the earliest reporting period presented
in the financial statements in which the Amendment is initially applied. The
cumulative effect of the initial application of the Amendment is recognized as
an adjustment to the opening balance of retained earnings (or another
component of equity, as appropriate) at that date.
The application of the Amendment did not have a material impact on the
Company's interim financial statements.
3. Amendment to IAS 1 - Disclosure of Accounting Policies:
In February 2021, the IASB issued an amendment to IAS 1, "Presentation of
Financial Statements" ("the Amendment"), which replaces the requirement to
disclose 'significant' accounting policies with a requirement to disclose
'material' accounting policies. One of the main reasons for the Amendment is
the absence of a definition of the term 'significant' in IFRS whereas the term
'material' is defined in several standards and particularly in IAS 1.
The Amendment is effective for annual periods beginning on or after January 1,
2023.
The above Amendment did not have an effect on the Company's interim
consolidated financial statements. However, the Company is evaluating whether
the Amendment will affect the disclosures of accounting policies in the
Company's annual consolidated financial statements.
NOTE 4: - INVESTMENT IN JOINT VENTURE (MARVELLA)
Summarized financial data of the joint venture.
30 June 31 December
2023 2022
Unaudited Audited
Euros in thousands
Statement of financial position of joint venture at reporting date:
Current assets 181 178
Property, plant and equipment 105 112
Intangible assets 2,704 2,314
Current liabilities (3) )1(
Liability to non-controlling interest in subsidiary (181) (161)
Loan from Firering (2,125) (2,073)
Net assets 681 369
Non-controlling interests (944) (369)
Equity attributable to equity holders of the joint venture (1) 263 -
Total equity (681) (369)
Investment in joint venture (2) 1866 2,073
(1) Comprised of:
Capital reserve from transaction with non-controlling interest
(*) 243
Accumulated
deficit
20
263
(*) In March 2023 Marvella exercised the remaining existing option
originally between Firering and Atex's shareholder and purchased an
additional 13% of the issued shares in Atex and reached a total holding of 90%
in Atex for a total consideration of €259 thousand. According to the
agreement with Ricca Resources, Ricca paid €200 thousand and the balance of
€59 thousand was funded by the Company. Marvella recorded the difference
between the total consideration and the carrying amount of the non-controlling
interest in the amount of €243 thousand as a capital reserve in equity.
(2) Investment is net of Company's share of loss and capital reserve in joint
venture of €263 thousand.
For the period ending 30 June 2023, Ricca funded exploration expenditures of
the joint venture in the amount of €843 thousand, of which €253 thousand
was received in 2022.
NOTE 5:- SUBSEQUENT EVENT
On 21 September 2023, the Company announced that it had completed a Placing of
11,630,769 new Ordinary shares to certain investors at a price of 6.5 pence
per shares for total gross proceeds of £756,000 (€870 thousand). Certain
directors and their related parties have confirmed their intention to
subscribe for approximately 1,076,922 Ordinary shares at the Placing price by
funding an additional £70,000 (€81,000). It is expected that they will
participate in the intended subscription shortly after the publication of the
Company's interim results for the six months ended 30 June 2023.
In connection with the Placing, the Company has issued to the broker 581,538
warrants to purchase Ordinary shares at an exercise price of 6.5 pence per
share. The warrants may be exercised at any time during a period ending three
years from the date of the Admission to trading of the above Ordinary shares.
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. END IR VQLFLXKLZBBLRecent news on Firering Strategic Minerals
See all newsREG - Firering Strategic - First Quicklime Sales & Expansion Ongoing
AnnouncementREG - Firering Strategic - Increases Interest in Zambian Quicklime Project
AnnouncementREG - Firering Strategic - Commercial Production Gains Momentum at Limeco
AnnouncementREG - Firering Strategic - Result of Placing and Subscription
AnnouncementREG - Firering Strategic - Proposed Placing & Subscription
Announcement