Aim-listed Firering Strategic Minerals has signed an agreement with a multinational commodity trading company, which will provide a logistics services revenue stream at Limeco, its advanced quicklime project in Zambia.
Firering currently holds a 20.5% stake in Limeco Resources, with an option to increase its interest to 45%.
With historical investment exceeding $100-million once fully operational, the company expects Limeco to become the largest quicklime operation in Zambia able to support the Copperbelt's rapidly expanding copper production needs.
Projected to generate $600 000 to $720 000 a year, the company says the agreement will support the core quicklime operation, which is on track to be commissioned and begin first production in the fourth quarter of this year.
Notably, the company says, the agreement means Limeco is producing positive operational cash flow even before the start of quicklime production.
It adds that negotiations are ongoing with major copper producers for the sale of quicklime, while aggregate sales began in October 2023, with further offtake agreements expected as operations ramp up in the coming months.
"The immediate cash flow from the logistics services agreement, in addition to aggregate revenue, aligns with Limeco's multi-revenue strategy and supports the development of its core quicklime project due to start first production towards the end of the year.
“We are excited about the opportunities ahead and remain committed to maximising value for our shareholders,” says CEO Yuval Cohen. 