Firering Strategic Minerals seeks refund as partner pulls out of JV
Firering Strategic Minerals PLC on Tuesday said joint venture partner Ricca Resources Ltd has withdrawn from the earn-in agreement which started in November 2022.
The Zambia and Ivory Coast-focused mining company said as a result of the withdrawal, Ricca no longer holds any interest in the Atex and Alliance lithium-tantulum projects in the Ivory Coast.
As a result, Firering will continue to hold 90% of Atex and 51% in Alliance free and clear from any rights of Ricca.
Firering said it is not under any obligation to repay or refund any consideration received or expenditures covered by Ricca during the agreement.
The company said it believes payments made to Ricca to advance the projects are outstanding to be repaid to it, as they were to be reimbursed by Ricca under the agreement.
It said it is in dialogue with Ricca to seek to resolve and finalise the amounts which are owed to it.
As a result of the agreement, Firering received shares in Ricca which currently amount to a holding of around 11%.
‘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 crystalise their value,’ said Chief Executive Officer Yuval Cohen.
‘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.’
Shares in Firering Strategic Minerals were down 2.9% at 1.87 pence in London on Tuesday afternoon.
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