Client NewsFirering Strategic Minerals PLC: Increase Stake in Atex Lithium Project to 90%; Issue of Equity
Firering, an exploration company focusing on critical minerals, announces that it has increased its stake in its flagship Atex Lithium Tantalum Project (“Atex” or the “Project”) in Côte d’Ivoire to 90%.
Pursuant to an existing option shares (“Option Shares”) agreement between Firering and Atex dated 31 March 2021:
o Firering has acquired 13% of the issued share capital of Atex for €258,484 increasing its stake from 77% to 90%
o Consideration for the acquisition was split between Firering and Ricca Resources Limited (“Ricca”) pursuant to the terms of an investment agreement announced on the 2 November 2022: http://bit.ly/3ZyRslZ . The split of payments was as follows:
- Firering – €58,742
- Ricca – €199,742
Mutually agreed with the Option Shares vendor, a local owner, that they shall retain the remaining 10% of the Option Shares in order to retain a shareholding interest in the Atex project moving forward.
Transaction in line with the Company’s strategy to focus on critical minerals and develop Atex to feed rampant demand for ethically sourced minerals required for the Net Zero transition.
Atex is located in the Côte d’Ivoire – a politically stable, proven mining jurisdiction in West Africa, which is underexplored and ripe for mining investment.
Yuval Cohen, Chief Executive of Firering, said:
“The Atex project has the potential to become a significant lithium resource in West Africa in a relatively short period of time. The quality and potential of Atex was recognised by Ricca who is earning into the project and supporting us in fast tracking the project to Definitive Feasibility Study (“DFS”). This coupled with the success of our Phase I drilling campaign and start of the Phase II soil sampling programme announced at the beginning of this year, made our decision to increase our stake in the project to 90% an easy one. We look forward to updating shareholders on our progress.”
As set out in Firering’s Admission Document dated 5 November 2021, the Company entered into a share purchase agreement on 1 March 2021 with Mr Niagne Pierre Dider Djehoury (acting for his associates: Mr Ibrahima Kourouma, Mrs Marie Claire Djehoury (nee Kassepith), Mrs Inchata Bamba and Mr Adama Kourouma) (the “Seller”) pursuant to which the Company acquired 51% of the entire issued share capital of Atex Mining Resources SARL (“Atex”) comprising 1,020 ordinary shares of 10,000 FCFA each in the capital of Atex (the “Atex SPA”). The consideration paid was 40,000,000 FCFA.
The Company was granted an option to acquire a further 39% of the Atex issued shares held by the Seller, comprising 780 Atex shares (“Option Shares”). On 4th July 2022, the Company announced that of these Option Shares, 320 Option Shares (representing 16% of the issued share capital of Atex) had been acquired by a cash payment of 210,000,000 FCFA (€320,122) at the exchange rate of €1 = 656 FCFA).
The remaining 260 Option Shares (representing 13% of the issued share capital of Atex) have now been acquired for a consideration of 169,565,217 FCFA (€258,484) at the exchange rate of €1 = 656 FCFA). It was mutually agreed with the Option Shares vendor, a local owner, that they shall retain the remaining 200 Option Shares (10% of the issued share capital of Atex) of the Option Shares in order to retain a shareholding interest in the Atex project moving forward.
In addition, and pursuant to the Atex SPA, the Company will procure that the Seller is paid a net smelter royalty equal to 0.5% of net smelter returns, such royalty to be paid each trimester. The Company has agreed that it will fund the operations of Atex for a period of 24 months following completion of the Atex SPA in relation to its exploration activities, in an amount estimated at 300,000,000 FCFA. This funded condition has been met and concluded.
In the year ended 31 December 2021 Atex reported a loss of € nil on turnover of €nil. At 31 December 2021 Atex had net assets (excluding inter-company loans of €270,823 due to Firering group companies) of approximately €270,110.
Issue of Equity
In addition, application has been made to the London Stock Exchange for the admission of a total of 1,054,712 ordinary shares of €0.001 each (“Ordinary Shares”) issued to certain employees and advisers who elected to receive settlement of fees to the total of £92,204 in shares for services provided.
Of the shares allotted, 119,121 shares were issued at a price of 13p per share, and 935,591 shares were issued at a price of 8.2p per share.
It is expected that Admission will become effective on or around 17 March 2023.
Total Voting Rights
Following Admission, the Company’s issued share capital will comprise 89,098,272 ordinary shares with one voting right each. As the Company does not hold any shares in Treasury, the total number of voting rights in the Company is also 89,098,272 and this figure of ordinary shares may be used by shareholders 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.
Increases Stake in Atex Lithium Project to 90% – 07:00:02 09 Mar 2023 – FRG News article | London Stock Exchange
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