15th Nov 2024 14:20
(Alliance News) - Firering Strategic Minerals PLC on Friday announced significant funding progress for its Limeco quicklime project in Zambia, which is on track for phased commissioning by late 2024.
The Zambia and Ivory Coast-focused mining company secured an 18-month unsecured bridge loan facility of up to GBP1 million. The bridge loan accrues annual interest at 15%, with semi-annual payments and a minimum return of 15% for early repayment.
Participation from existing shareholders also raised GBP850,000, earmarked for an acquisition instalment to increase its stake in the Limeco project from 10% to 16.7%.
Firering has also submitted a loan application to a Zambian bank for approximately USD7.5 million. The funds will be used to complete the Limeco acquisition, increasing Firering's interest to 45%, and to repay the bridge loan.
Chief Executive Officer Yuval Cohen said: "This non-dilutive unsecured Bridge Loan, which saw strong participation from existing shareholders, enables us to maintain full shareholder value as we accelerate Limeco's quicklime project toward phased commissioning beginning in the fourth quarter of 2024."
Limeco has already begun generating positive operational cash flow from aggregate sales and logistics agreements, with quicklime production expected to ramp up in 2025. The project is on track to commission the first of eight kilns in late 2024, aiming for daily production of 600 to 800 tonnes.
Firering said that modifications to Limeco's kilns, including a switch to coal gasification, are nearly complete. Laboratory tests from the pilot kiln showed promising quicklime results, with calcium oxide purity between 92% and 94%.
Shares in Firering Strategic Minerals were up 6.6% at 5.27 pence in London on Friday afternoon.
By Eva Castanedo, Alliance News reporter
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