TIDMFRG
RNS Number : 3429S
Firering Strategic Minerals PLC
09 March 2023
Firering Strategic Minerals plc / EPIC: FRG / Market: AIM /
Sector: Mining
9 March 2023
Firering Strategic Minerals plc
("Firering" or "the Company")
Atex Lithium Tantalum Project Acquisition:
Firering Increases Stake in Atex Lithium Project to 90%; Issue
of Equity
Firering, an exploration company focusing on critical minerals,
announces that it has increased its stake in its flagship Atex
Lithium Tantalum Project ("Atex" or the "Project") in Côte d'Ivoire
to 90%.
Highlights:
-- Pursuant to an existing option shares ("Option Shares")
agreement between Firering and Atex dated 31 March 2021:
o Firering has acquired 13% of the issued share capital of Atex
for EUR258,484 increasing its stake from 77% to 90%
o Consideration for the acquisition was split between Firering
and Ricca Resources Limited ("Ricca") pursuant to the terms of an
investment agreement announced on the 2 November 2022:
http://bit.ly/3ZyRslZ . The split of payments was as follows:
-- Firering - EUR58,742
-- Ricca - EUR199,742
-- Mutually agreed with the Option Shares vendor, a local owner,
that they shall retain the remaining 10% of the Option Shares in
order to retain a shareholding interest in the Atex project moving
forward.
-- Transaction in line with the Company's strategy to focus on
critical minerals and develop Atex to feed rampant demand for
ethically sourced minerals required for the Net Zero
transition.
-- Atex is located in the Côte d'Ivoire - a politically stable,
proven mining jurisdiction in West Africa, which is underexplored
and ripe for mining investment.
Yuval Cohen, Chief Executive of Firering, said:
"The Atex project has the potential to become a significant
lithium resource in West Africa in a relatively short period of
time. The quality and potential of Atex was recognised by Ricca who
is earning into the project and supporting us in fast tracking the
project to Definitive Feasibility Study ("DFS"). This coupled with
the success of our Phase I drilling campaign and start of the Phase
II soil sampling programme announced at the beginning of this year,
made our decision to increase our stake in the project to 90% an
easy one. We look forward to updating shareholders on our
progress."
Background
As set out in Firering's Admission Document dated 5 November
2021, the Company entered into a share purchase agreement on 1
March 2021 with Mr Niagne Pierre Dider Djehoury (acting for his
associates: Mr Ibrahima Kourouma, Mrs Marie Claire Djehoury (nee
Kassepith), Mrs Inchata Bamba and Mr Adama Kourouma) (the "Seller")
pursuant to which the Company acquired 51% of the entire issued
share capital of Atex Mining Resources SARL ("Atex") comprising
1,020 ordinary shares of 10,000 FCFA each in the capital of Atex
(the "Atex SPA"). The consideration paid was 40,000,000 FCFA.
The Company was granted an option to acquire a further 39% of
the Atex issued shares held by the Seller, comprising 780 Atex
shares ("Option Shares"). On 4(th) July 2022, the Company announced
that of these Option Shares, 320 Option Shares (representing 16% of
the issued share capital of Atex) had been acquired by a cash
payment of 210,000,000 FCFA (EUR320,122) at the exchange rate of
EUR1 = 656 FCFA).
The remaining 260 Option Shares (representing 13% of the issued
share capital of Atex) have now been acquired for a consideration
of 169,565,217 FCFA (EUR258,484) at the exchange rate of EUR1 = 656
FCFA). It was mutually agreed with the Option Shares vendor, a
local owner, that they shall retain the remaining 200 Option Shares
(10% of the issued share capital of Atex) of the Option Shares in
order to retain a shareholding interest in the Atex project moving
forward.
In addition, and pursuant to the Atex SPA, the Company will
procure that the Seller is paid a net smelter royalty equal to 0.5%
of net smelter returns, such royalty to be paid each trimester. The
Company has agreed that it will fund the operations of Atex for a
period of 24 months following completion of the Atex SPA in
relation to its exploration activities, in an amount estimated at
300,000,000 FCFA. This funded condition has been met and
concluded.
Atex financials
In the year ended 31 December 2021 Atex reported a loss of EUR
nil on turnover of EURnil. At 31 December 2021 Atex had net assets
(excluding inter-company loans of EUR270,823 due to Firering group
companies) of approximately EUR270,110.
Issue of Equity
In addition, application has been made to the London Stock
Exchange for the admission of a total of 1,054,712 ordinary shares
of EUR0.001 each ("Ordinary Shares") issued to certain employees
and advisers who elected to receive settlement of fees to the total
of GBP92,204 in shares for services provided.
Of the shares allotted, 119,121 shares were issued at a price of
13p per share, and 935,591 shares were issued at a price of 8.2p
per share.
It is expected that Admission will become effective on or around
17 March 2023.
Total Voting Rights
Following Admission, the Company's issued share capital will
comprise 89,098,272 ordinary shares with one voting right each. As
the Company does not hold any shares in Treasury, the total number
of voting rights in the Company is also 89,098,272 and this figure
of ordinary shares may be used by shareholders 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.
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
Vassilios Carellas
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 @stbridespartners.co.uk
Ana Ribeiro / Susie Geliher /Isabelle
Morris
Notes to Editors:
Firering Strategic Minerals
Firering Strategic Minerals plc is an AIM-quoted mining company
focused on exploring and developing a portfolio of mines producing
critical minerals in the Côte d'Ivoire including lithium and
tantalum to support the global transition to net zero emissions. It
operates the Atex Lithium-Tantalum Project in northern Côte
d'Ivoire, which is prospective for both lithium and tantalum.
Firering intends to advance development at Atex with a view to
establishing a maiden Lithium resource and a pilot scale production
of ethical tantalum and niobium production within 18 months to
generate early revenues and support further exploration work. A
large-scale tantalum production facility will be developed
following pilot results, which will be supported by a debt facility
of FCFA 5,057,000,000 (approximately EUR7,500,000) currently under
negotiation to fund the entire scale-up plan to develop a portfolio
of ethically sourced mineral projects in the Côte d'Ivoire,
supplying EV batteries, high tech electronics and other
fast-growing end markets. Firering also recently acquired Toura
Nickel-Cobalt Project, which comprises an application for a
nickel-cobalt mineral prospecting licence with an area of
approximately 168 km(2) , in western Côte d'Ivoire.
About Ricca Resources
www.riccaresources.com.au
Ricca Resources is an Africa-focused exploration company with
extensive gold portfolios in prospective birmian terrains in Côte
d'Ivoire, a partnership to advance a stand-out lithium asset also
in Côte d'Ivoire and a potential new gold province discovery in
Chad.
The Company was formed as the entity to hold and advance the
Atlantic Lithium Limited (formerly IronRidge Resources Limited)
suite of demerged gold projects. Ricca's strategy is to further
grow, diversify and de-risk its asset portfolio beyond only gold to
include green commodities.
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