Firering Strategic Minerals has agreed a potential sale of majority interests in its Atex and Alliance lithium projects in Côte d’Ivoire to Australasian Metals, as it shifts capital and management attention towards its Limeco quicklime operation in Zambia.
Australasian Metals has secured an exclusive 90-day option to acquire a 75% interest in Atex Mining Resources, which holds the Atex lithium-tantalum licence, and a 51% interest in Alliance Minerals Corporation, which holds the Alliance project. It also has a route to increase its interest in Alliance by a further 29%. The total cash consideration could reach A$1.5 million if the transaction proceeds.
The proposed deal would reduce Firering’s direct funding requirements in Côte d’Ivoire while preserving exposure to future project development. Firering would retain a 15% free-carried interest in Atex, meaning Australasian Metals would fund exploration, permitting, community obligations and licence costs during the agreed free-carry period.
That free carry would continue until the later of a final investment decision, at least US$5 million of qualifying expenditure by Australasian Metals and completion of the agreed exploration programme. During that period, Firering would not face dilution, cash calls or forfeiture of its retained interest.
Australasian Metals would become operator of the projects through newly established joint ventures if the transaction completes.
The agreement also gives Australasian Metals the option to acquire Firering’s retained interests for A$5 million during the free-carry period. At least A$2.5 million would be payable in cash, with the balance potentially settled in Australasian Metals shares.
Firering would also receive a 1% royalty on project revenues, subject to agreed deductions including mining and processing costs. Australasian Metals would have the right to acquire that royalty for a further A$5 million. These additional payments are optional and are not guaranteed.
Firering Strategic Minerals plc (LON:FRG) is an emerging quicklime producer and critical minerals explorer, with operations in Zambia and West Africa.
