REG - Firering Strategic - Logistics Services Revenue Agreement at Limeco

Firering Strategic MineralsAnnouncement

05/08/2024 07:00

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RNS Number : 0752Z  Firering Strategic Minerals PLC  05 August 2024

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

5 August 2024

Firering Strategic Minerals plc

("Firering" or "the Company")

 

Logistics Services Revenue Agreement Signed at Zambian Quicklime Project

 

Positive operational cashflow at Limeco even before start of core quicklime
production

 

Firering Strategic Minerals plc, a development company focusing on critical
minerals, is pleased to announce that an agreement (the "Agreement") with a
multinational commodity trading company has been signed, which will provide a
logistics services revenue stream at Limeco, its advanced quicklime project in
Zambia.

 

Highlights

·    Two year agreement providing expected revenue of US$600-720k per
annum.

·    Cash flow supporting commencement of core quicklime commissioning and
first production in Q4 2024.

·    Agreement means Limeco is producing positive operational cashflow
even before start of core quicklime production in Q4 2024.

·    Negotiations ongoing with major copper producers for the sale of
quicklime.

·    Aggregate sales began in Q4 2023 with further offtake agreements
expected as operations ramp up in the coming months.

 

CEO Yuval Cohen commented, "The immediate cashflow from the logistics services
agreement in addition to aggregate revenue aligns with Limeco's multi-revenue
strategy and supports the development of its core quicklime project due to
start first production towards the end of the year. We are excited about the
opportunities ahead and remain committed to maximising value for our
shareholders."

 

Details

Firering currently holds a 20.5% stake in Limeco Resources Limited ("Limeco")
with an option to increase this to 45%. With historical investment exceeding
US$100 million, once fully operational the Company expects Limeco will become
the largest quicklime operation in Zambia able to support the Copperbelt's
rapidly expanding copper production needs.

 

In line with its strategy of creating multi-revenue streams, Limeco has signed
an Agreement with a multinational commodity trading company to provide
logistics services. Projected to generate US$600-720k per annum, the Agreement
will support the core quicklime operation, which is on track to be
commissioned and commence first production in Q4 2024. Notably, the Agreement
means Limeco is producing positive operational cashflow even before the start
of quicklime production in Q4 2024. An operational update on the substantial
progress of the quicklime commission programme will be provided shortly.

 

Furthermore, negotiations are ongoing with major copper producers for the sale
of quicklime, while aggregate sales began in October 2023 with further offtake
agreements expected as operations ramp up in the coming months.

 

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 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 / Adam Dawes
 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

Notes

Firering Strategic Minerals plc is an AIM listed resource company set to
commence commissioning its significant quicklime project in Zambia in Q4 2024
to produce 600-800 tonnes of quicklime per day along with ancillary products.
With over US$100 million in historical investment, the project is
strategically positioned to support the expanding copper producers in the
Zambian Copper Belt, which are currently reliant on imported quicklime from
South Africa. Additionally, the Company is advancing the Atex Lithium-Tantalum
Project in northern Côte d'Ivoire, an exploration project rich in lithium and
tantalum-niobium, with drilling results indicating significant resource
potential in this established mining jurisdiction.

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