Aim-listed emerging quicklime producer and critical minerals explorer Firering Strategic Minerals has confirmed that it has received a formal notice of withdrawal from Ricca Resources in respect of the earn-in agreement (EIA) entered into with the company on November 2, 2022.

As a result of the withdrawal, Ricca has ceased to hold any interest in the Atex and Alliance lithium/tantulum projects, in Côte d'Ivoire. Accordingly, Firering will continue to hold 90% of Atex and 51% in Alliance free and clear from any rights of Ricca.

Firering said on August 19 that there was no obligation for it to repay or refund any consideration received or expenditures covered by Ricca during the term of the EIA.

Additionally, the company made certain funds available to the projects, which are to be reimbursed by Ricca under the EIA, to advance the projects during the term of the EIA up until withdrawal.

Firering said it deemed these amounts as outstanding and payable by Ricca.

Firering said it was in dialogue with Ricca seeking to resolve and finalise the amounts owed to it.

As a result of the EIA, the company received shares in the capital of Ricca, which currently amounts to a shareholding in Ricca of about 10.6%.

"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. 

“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," said Firering CEO Yuval Cohen.

He pointed out that funds recovered from Ricca under the terms of the EIA would be directed towards accelerating the development of Firering’s flagship Limeco operations, in Zambia.

“Limeco remains at the heart of our business, offering scalable near-term revenues and the foundation for Firering's long-term value creation alongside the additional upside that we expect to realise ultimately from the Atex and Alliance projects," he commented.