LONDON, UK: Firering, an exploration company focusing on critical minerals, announced today that it has signed an option deed to acquire up to 28.33% of Limeco Resources Limited, the owner of a limestone project in Zambia, for an aggregate of $5.1 million across two tranches.

The project comprises of a limestone quarry with an estimated resource of more than 73 million tonnes and a quicklime production facility with the potential to produce between 500 and 600 tonnes of quicklime per day.

The option deed was entered into by Firering and Clearglass Investments Limited as co-option holders with the current shareholders of Limeco for an option over 33.33% of Limeco. Clearglass will pay a non-refundable $500,000 fee for the grant of the option, in exchange for up to 5% of Limeco upon exercise of the option by Firering. Firering will have the option to acquire up to 28.33% of Limeco across two tranches for an aggregate amount of $5.1 million.

The first tranche of the option is exercisable by Firering at any time over the next 12 months, and will require Firering to pay $2.5 million to the vendors and receive 17.5% of Limeco’s shares, with Clearglass receiving 2.5%. The second tranche of the option is exercisable at any time in the 12 months following exercise of the first tranche, and will require Firering to pay $2.6 million and receive a further 10.83% of Limeco’s shares, with Clearglass receiving a further 2.5%.

Limeco is in the process of commissioning a lime plant in Zambia, which is ready for immediate operation and includes:

• Existing limestone quarry with an estimated resource* of 73.7Mt @ 95.3% CaCO3.
• Two stage crushing circuit with an installed primary throughput of 500tph of limestone, and a lime plant comprising of eight kilns for burning crushed limestone to produce between 500 and 600 tonnes of quicklime per day.
• A limestone stockpile of 200,000 tonnes to be used for immediate production.
• Existing infrastructure of main access roads, power and water.
• Advanced discussions ongoing for lime off-take with major copper producers.

Quicklime has multiple uses and is an essential reagent widely used during flotation of copper sulphide minerals. Limeco is expected to be profitable and delivering cash flow within 12-24 months with the view of paying dividends to shareholders as soon as possible.

Firering will be assessing debt financing options to acquire its stake in Limeco, and will also have the right to appoint either the CEO or CFO of Limeco with effect from the grant of the option in order to oversee and manage the initial commissioning and commencement of production.

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