Firering Strategic Minerals plc (LON:FRG), an emerging producer of quicklime and explorer of critical minerals, is pleased to announce a placing and subscription of 67,333,335 new ordinary shares of €0.001 each in the Company at an issue price of 1.5 pence per Placing Share and Subscription Share to raise £1.01 million (before expenses). Additionally, Firering is pleased to provide an update on Limeco’s operational progress.
The net proceeds raised from the Placing and Subscription, together with internal funds, are expected to be sufficient to cover the cost of exercising the first and second tranche payments of the Limeco Option (as detailed in the notification of 4.31pm on 28 May 2024), which have exercise periods ending on 31 July 2025 and 30 October 2025 respectively. Exercise of these tranches of the Option will increase Firering’s interest in Limeco to 26.9% and 30.7% respectively. Funds from the exercise will allow Limeco’s operations to ramp up ahead of the third tranche exercise period ending on 30 January 2026.
Following completion of the Placing and Subscription, Firering intends to exercise its option over the first tranche by 31 July 2025, using proceeds of the Placing and Subscription to fund the exercise consideration.
Discussions with a leading Zambian bank to raise debt funding to allow the Company to further increase its stake in Limeco and refinance the Bridge Loan (as notified on 15 November 2024) are progressing. This facility is expected to be finalised once daily output at Limeco consistently meets required levels.
Shard Capital Partners LLP is acting as sole broker in connection with the Placing.
HIGHLIGHTS
· Placing and Subscription to raise £1.01 million.
· Funds raised sufficient to cover the first two tranches of the New Option* payments, which will increase Firering’s interest in Limeco to 30.7%, though only the first Tranche of $1,033,000 to acquire 6.4% to take the Company’s interest to 26.9% will be exercised by 31 July.
· Debt facility discussions with Zambian bank to be finalised once daily output consistently meets required levels.
· Ongoing commissioning progress toward full-scale production capacity of 600-800 tonnes per day (‘tpd’) of quicklime.
· Infrastructure upgrades to Kiln 1 now in progress following 70 consecutive days of uninterrupted production from 10 May 2025.
· Gasifier and water purification plant performing reliably since commissioning in February 2025, with no downtime.
· Refurbishment of Kiln 2 commenced in July 2025, with hot commissioning on track for end-Q3/early Q4; Kilns 3 and 4 to follow.
· First sale completed in June 2025, with follow-on demand highlighting the importance of bringing the remaining seven kilns online in a timely manner.
*as detailed in the Company’s notification of 28 May 2024
Yuval Cohen, Chief Executive Officer of Firering Strategic Minerals, commented: “We are pleased to have completed this placing and subscription, which was largely supported by existing shareholders who recognise the value of our investment in the exciting Limeco quicklime project. Their backing reflects growing confidence in Limeco’s ambition to become a leading regional producer of quicklime, a critical input for the copper sector and broader industrial markets across Southern and Central Africa.
“Since refiring Kiln 1 on 10 May 2025, we achieved 70 consecutive days of uninterrupted production, our longest continuous run to date. During this period, we identified several opportunities to increase daily output. A recent short downtime window is now being used to implement various upgrades, including the installation of a more powerful suction fan motor to improve calcination efficiency and overall productivity. Accordingly, Kiln 1 is expected back online in early August.
“Additionally, renovation work on Kiln 2 is now underway and will incorporate a range of enhancements to support a smooth and efficient start-up. This is a key priority, particularly in light of the strong market demand evidenced by follow-on enquiries since our first sales in June, which have already exceeded our current production capacity.”
BACKGROUND TO AND REASONS FOR THE PLACING AND SUBSCRIPTION
On 28 May 2024, Firering announced that it had entered into a share purchase agreement to acquire an initial 20.5% of Limeco Resources Limited, the owner of an advanced limestone project located 22km west of Lusaka in Zambia. Additionally, it was granted an option to acquire a further 24.5% interest in Limeco for an aggregate consideration of US$4,650,000 to take its interest in Limeco to 45%.
Having completed the acquisition of the initial 20.5% of Limeco, Firering’s Option is exercisable in 5 tranches between July 2025 and July 2026 as follows:
· an option to acquire a 6.4% interest no later than 31 July 2025 for a payment of US$1,033,333;
· an option to acquire a 3.8% interest no later than 30 October 2025 for a payment of US$620,000;
· an option to acquire a 5.5% interest no later than 30 January 2026 for a payment of US$981,667;
· an option to acquire a 5.5% interest no later than 30 April 2026 for a payment of US$981,667; and
· an option to acquire a 3.3% interest no later than 31 July 2026 for a payment of US$1,033,333.
It was intended that a loan with a leading Zambian bank would pay for the additional acquisition of interests in Limeco and in this regard discussions have been ongoing (see RNS dated 15 November 2024). However, as consistent daily output and commercial sales from Kiln 1 have been slower than anticipated, the financing is still in the process of being finalised. Accordingly, Firering has decided to raise funds via a Placing and Subscription to ensure that it has the funding available to allow it to complete the 31 July 2025 and 30 October 2025 exercise payments as per the Option, to take its interest in Limeco to 30.7%.
Limeco Operations Update
Limeco was initially established by Glencore plc due to the shortage of quicklime in Zambia and the need for quicklime at its Mopane operations in Zambia. In total, over $US100m had been invested in establishing the limestone quarry and constructing the current lime plant. The lime plant consists of a two stage crushing circuit with an installed primary throughput of 300tph of limestone, and a quicklime production unit comprising eight kilns for burning crushed limestone to produce between 600 and 800 tonnes of quicklime per day.
Having commenced an optimisation programme in 2024, Limeco fired the first of its two gasifiers in February 2025, along with the first of eight kilns.
During the initial ramp-up of Kiln 1, Limeco encountered some operational challenges, notably blockages, referred to as hangups or ring formations, along the kiln’s refractory lining. These are common in lime kiln operations and can lead to unplanned downtime for their removal. Contributing factors typically include feed particle size and moisture content, the generation of fine quicklime powder, and the level of process control.
While such issues are inherent to lime production, they can be effectively mitigated through stringent management of feedstock quality and tight control of operating parameters. In line with this, drawing on early operational experience, the Limeco team has implemented a series of targeted improvements over the past few months. These include optimising feedstock size and cleanliness, as well as refining process control procedures, particularly those related to the early detection and efficient resolution of blockages. As a result, Kiln 1 consistently produced commercial grade quicklime reaching up to circa 40tpd from 10 May 2025 to 19 July 2025.
To increase output, Limeco plans to upgrade the Variable Speed Drive (“VSD”) and Induced Draft (“ID”) fan motor to higher-capacity units. A recent short downtime window is now being used to implement various upgrades, positioning Kiln 1 for stronger performance. The Company expects Kiln 1 to be back in operation at the beginning of August.
Elsewhere on site, the gasifier and water purification plant have both performed reliably and continuously since commissioning in February 2025, meeting operational expectations without incident.
Refurbishment work on Kiln 2 began in July 2025, with hot commissioning scheduled by the end of Q3 2025/early Q4 followed by Kilns 3 and 4. These renovations will incorporate the learnings and recommendations of Limeco’s operational team to ensure a smooth and efficient ramp-up across all units.
In June 2025, Limeco completed its first commercial sale: 90 tonnes of quicklime lumps were delivered to a buyer for use by a client in Zimbabwe. Positive feedback from the client has since led to further inquiries. As this exceeds the current daily output from Kiln 1, it underscores the importance of bringing the remaining seven kilns online in a timely manner to meet growing demand and capitalise on emerging market opportunities.
Sales of aggregates and ancillary products continue to contribute additional revenue, further strengthening Limeco’s operational foundation.
DETAILS OF THE PLACING AND SUBSCRIPTION
Placing
An engagement letter has been entered into by the Company and Shard. The Placing has raised, in aggregate, gross proceeds of £715,000 through the placing of 47,666,669 new Ordinary Shares to certain investors at a price of 1.5 pence per share. The Placing Price represents a discount of approximately 1.7 per cent. to the Closing Price of 1.525 pence per Ordinary Share on 28 July 2025, being the latest practicable business day prior to this announcement.
The Placing is conditional upon Admission of the Placing Shares to trading on AIM by 15 August 2025.
Subscription
The Company has raised £355,000 through the subscription whereby various investors have subscribed directly with the Company for 23,666,665 new ordinary shares at the Issue Price of 1.5 p per share.
The Subscription is conditional upon Admission of the Subscription Shares to trading on AIM by 15 August 2025.
In aggregate the Company has raised £1.01m gross (£982,000 net) in the Placing and Subscription.
Use of Proceeds
The net proceeds of the Placing and Subscription will be used, together with existing cash resources, to settle the consideration due to exercise the first tranche of the Option by 31 July 2025. The balance of the proceeds will be used in due course to exercise the consideration due to exercise the second tranche of the Option by 30 October 2025, and for general working capital purposes.
Directors’ participation in the fundraising
The Company’s Chairman, Youval Rasin, and director Shai Kol have each indicated their intention to subscribe for up to £125,000 and £50,000 of shares in the Company respectively on the same terms as placees.
However, the Company is currently in a close period pending the publication of the Operations Update detailed in this notification. A further announcement regarding participation by Mr Rasin and Mr Kol in the fundraising is expected to be made in due course. Such subscriptions will be treated as related party transactions under AIM Rule 13 of the AIM Rules for Companies.
Issue of Shares to Advisors
The Company has issued 1,020,000 new Ordinary Shares (“Advisor Shares”) to Shard, at an issue price of 1.5p per share, as part of their fee arrangements.
Issue of Warrants
The Company has conditionally issued 2,040,000 warrants (“Warrants”) to subscribe for ordinary shares to Shard, subject to Admission, as part of their fee arrangements. The warrants have an exercise price of 1.5 pence per share and an exercise period ending 3 years from the date of Admission.
Admission
Application will be made shortly to the London Stock Exchange plc for the Placing Shares, the Subscription Shares and the Advisor Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and that dealings in the Placing Shares, Subscription Shares and the Advisor Shares on AIM will commence at 8:00 a.m. on or around 1 August 2025.
Total voting rights
On Admission, Firering Strategic Minerals’ issued ordinary share capital will consist of 311,720,960 Ordinary Shares, with one vote per share. The Company does not hold any Ordinary Shares in treasury. Therefore, on Admission, the total number of Ordinary Shares and voting rights in the Company will be 311,720,960. With effect from Admission, this figure may be used by shareholders in the Company 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.
