Law firm Hill Dickinson’s national Corporate team has advised mining company Firering Strategic Minerals plc on its acquisition of an option in a limestone project in Zambia.
AIM-quoted Firering has acquired an option to acquire 28.33% of the shares in Zambian company Limeco Resources Limited, which holds a 100% interest in a limestone project located 22 km west of Lusaka, Zambia. The aggregate value of the consideration is US$ 5.1 million across two tranches.
The limestone project comprises a limestone quarry with an estimated non-JORC compliant mineral resource of more than 73 million tonnes (Source: Golder Associates, October 2017) and a quicklime production facility with the potential to produce between 500 and 600 tonnes of quicklime per day. Quicklime has multiple uses and is an essential reagent widely used during flotation of copper sulphide minerals.
Hill Dickinson previously advised Firering on its IPO in Q4 2021 and on its joint venture with Ricca Resources in Q4 2022 in relation to its Atex lithium project in Côte d’Ivoire.
Commenting, Yuval Cohen, CEO of Firering, said: “Firering has been keen to add a production asset to its portfolio. We believe this is a unique opportunity for Firering to diversify its investments and secure a stake in an advanced project which is commission ready with the potential to be in production within a year. Should both options be exercised, our 28.33% stake in Limeco is expected to generate cashflow for Firering. I am looking forward to keeping the market updated with our achievements at Limeco.
“It was a pleasure to work with the Hill Dickinson team on this transaction and their support has enabled Firering to execute this transaction in order to provide Firering with an opportunity to diversify its asset portfolio and to generate cashflow in the near term.”
Commenting for Hill Dickinson, Sam Hudson said: “We were delighted to be able to assist Firering with this transaction. We wish Firering well as it looks to execute its strategy and increase its stake in Limeco.”