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LONDON - Firering Strategic Minerals plc (AIM:FRG) announced Tuesday that its joint venture partner Ricca Resources Limited has formally withdrawn from their earn-in agreement related to lithium-tantalum projects in Côte d’Ivoire.
Following the withdrawal, Firering will retain its original ownership stakes of 90% in the Atex project and 51% in the Alliance project, free from any rights previously granted to Ricca under the agreement that was established in November 2022.
The company stated that it is not obligated to repay or refund any consideration received or expenditures covered by Ricca during the term of the agreement. Firering also indicated it had advanced certain funds to the projects that were to be reimbursed by Ricca, which it now considers outstanding. The company reported it is in discussions with Ricca to resolve these financial matters.
As part of the original agreement, Firering received shares in Ricca and currently holds approximately 10.6% of that company. Both lithium-tantalum projects are currently under care and maintenance.
Yuval Cohen, Chief Executive Officer of Firering, said the withdrawal gives the company "full control" of these assets and "flexibility to explore alternative ways to crystalize their value." He added that the company remains confident in the "significant unrealised potential" of the projects.
Firering indicated that any funds recovered from Ricca would be directed toward accelerating development of its flagship Limeco operations, which the company described as offering "scalable near-term revenues."
The information was disclosed in a company press release statement.
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