Firering Strategic Minerals Plc (LON:FRG) Independent Non-Executive Director Vassilios Carellas caught up with DirectorsTalk for an exclusive interview to discuss the recent fundraise, and the assurance to investors in the long-term profitability of Limeco.
Q1: Firering Strategic Minerals has recently raised an approximate £2 million. Can you outline for us the reasons why that was raised?
A1: Primarily, it has been raised to make the next payment that’s due, which is at the end of April, to the lime project in Zambia.
At the moment, we are working quite actively on a debt finance deal to finance the rest of the purchase. However, we were running up to the deadline of the April payment, and rather than run the risk of not getting the debt in place by the end of April, we decided to bite the bullet and raise the funds so that we can meet and make that payment and continue with our increasing interest in Limeco.
Q2: Now, I also believe that you participated in the subscription along with two other directors. What motivated your decision?
A2: I held my corner, I would have liked to have done more at these levels but obviously, my current situation didn’t allow me to but, yes, it’s a great time to get in.
The share price has been and has run as, you know, as high as 6p in recent months and obviously, the upcoming funding requirements has kept a cap on the share price. We believe now that we’ve done this funding, and we’ve got that out of the way, and with the debt imminently hopefully being sorted out as well, that will give the shares a good boost with the market knowing that we’re not going to be coming back to market anymore.
Q3: What assurances can you provide investors about the long-term profitability of Limeco?
A3: Our product is mainly at the moment directed towards the copper market in Zambia. The quick lime is used in the copper flotation process and that’s where our focus is at the moment.
Obviously, if copper price were to tank and production decreases, then obviously we would be affected by that but the long-term forecast for copper is bullish. At the moment, there is a shortage of quick lime in-country so that’s the assurance that we can give to the market is that the fundamentals are there in-country at the moment and forecasts support quite a strong support in that going forwards.
