Firering Strategic Minerals plc (LON:FRG), an emerging producer of quicklime and explorer of critical minerals, has confirmed that it has received a formal notice of withdrawal from Ricca Resources Limited in respect of the earn-in agreement entered into with the Company and notified on 2 November 2022.
As a result of the withdrawal, Ricca ceases to hold any interest in the Atex and Alliance Lithium-Tantulum Projects in Cote d’Ivoire and accordingly the Company will continue to hold 90% of Atex and 51% in Alliance of the Projects free and clear from any rights of Ricca. There is no obligation on the Company to repay or refund any consideration received, or expenditures covered by Ricca during the term of the EIA. Additionally, the Company made certain funds available to the Projects (to be reimbursed by Ricca under the EIA) in order to advance the Projects during the term of the EIA up until withdrawal which the Company believes are outstanding to be repaid to it. The Company is in dialogue with Ricca seeking to resolve and finalise the amounts owing to the Company. As a result of the EIA, the Company received shares in the capital of Ricca which currently amounts to an approximate shareholding in Ricca of 10.6%.
Yuval Cohen, Chief Executive Officer of Firering Strategic Minerals, commented: “Ricca’s withdrawal from the earn-in to our Atex and Alliance Lithium-Tantalum Projects transfers full control of these assets to Firering, and also equips the Company with the flexibility to explore alternative ways to crystalize their value. While currently on care and maintenance, the Company remains confident in the significant unrealised potential of Atex and Alliance, and the Board is actively evaluating opportunities to unlock and maximise this value for shareholders.
“Under the terms of the EIA, Firering will also retain its ~10% equity interest in Ricca and we are also working to recover the funds advanced for the furtherance of the Projects (and to be repaid by Ricca under the EIA) during the partnership, which will be directed towards accelerating the development of our flagship Limeco operations. Limeco remains at the heart of our business, offering scalable near-term revenues and the foundation for Firering’s long-term value creation alongside the additional upside that we expect to realise ultimately from the Atex and Alliance Projects.”
