Firering Strategic Minerals (LSE:FRG) has secured £2.5 million through a placing and subscription involving 250 million new shares issued at 1 pence each. The new shares represent roughly 39.2% of the company’s enlarged share capital, with certain directors participating in the fundraising as related parties.
Net proceeds of approximately £2.34 million are expected to be directed primarily toward acquiring an additional 5.5% interest in the Zambia-based Limeco operation, alongside covering associated taxes and supporting ongoing operations. The funds may also be used to exercise the final option that would increase Firering’s stake in Limeco to 45%, as well as for general working capital purposes. The transaction remains subject to shareholder approval at a general meeting scheduled for 18 May, followed by the admission of the new shares and attached warrants to AIM.
The capital raise supports Firering’s strategy of expanding its position in Limeco, one of the region’s most promising lime production assets. The project has recently reached breakeven, secured its first supply agreement with a major copper producer, and is preparing to bring additional kilns into operation. Increasing its stake would give Firering greater exposure to future production growth in quicklime.
In addition, the fundraising will help streamline the company’s capital structure by formalising previous share issuances, increasing authorised share capital, and providing flexibility for future equity raises as needed.
More about Firering Strategic Minerals Plc
Firering Strategic Minerals Plc is an AIM-listed company focused on the production and development of industrial and critical minerals across Africa. Its near-term focus is the Limeco quicklime project in Zambia, where it currently holds a 36.2% stake with an option to increase this to 45%. The company is targeting customers in mining, agriculture, and industrial sectors, while also advancing its Atex lithium-tantalum project in Côte d’Ivoire.
Leave a Reply