Firering raises £1.01m to increase stake in Zambian quicklime project

Published 29/07/2025, 07:38
Firering raises £1.01m to increase stake in Zambian quicklime project

LONDON - Firering Strategic Minerals (AIM:FRG) has raised £1.01 million through a placing and subscription of 67.3 million new shares at 1.5 pence per share to fund the expansion of its stake in Limeco Resources Limited, a Zambian quicklime producer.

The funds will enable Firering to exercise the first two tranches of its option to increase ownership in Limeco from the current 20.5% to 30.7%. The company plans to exercise the first tranche by July 31, which will increase its stake to 26.9% at a cost of $1.03 million.

Limeco’s operations have shown progress with Kiln 1 achieving 70 consecutive days of uninterrupted production from May 10 until July 19, 2025. The kiln is currently undergoing infrastructure upgrades to increase daily output and is expected to resume operations in early August.

"Since refiring Kiln 1 on 10 May 2025, we achieved 70 consecutive days of uninterrupted production, our longest continuous run to date," said Yuval Cohen, Chief Executive Officer of Firering.

Refurbishment of Kiln 2 began in July with hot commissioning scheduled for late third quarter or early fourth quarter of 2025. Limeco completed its first commercial sale in June, delivering 90 tonnes of quicklime to a client in Zimbabwe.

Discussions with a Zambian bank regarding debt financing are ongoing and expected to be finalized once daily output consistently meets required levels. This facility would allow Firering to further increase its stake in Limeco and refinance an existing bridge loan.

The placing was conducted by Shard Capital Partners (WA:CPAP) LLP, with Firering’s Chairman Youval Rasin and director Shai Kol indicating intentions to subscribe for up to £125,000 and £50,000 respectively.

According to the company’s press release statement, the Limeco plant has the potential to produce between 600 and 800 tonnes of quicklime per day when operating at full capacity.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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