Firering Strategic Minerals (AIM:FRG) has exercised the fourth tranche of its option to acquire 5.5% of Limeco, paying US$981,667 and increasing its stake to 41.7% under an aggregate US$4.65m option that can take the holding to 45.0%.
The exercise follows Limeco's achievement of operational breakeven and a production ramp, with combined kiln discharge averaging over 135 tonnes per day across the first 20 active days of May and Kiln 2 now operating above its 80 tpd target.
"Increasing our shareholding at this stage allows Firering and its shareholders to participate more fully in Limeco's continued growth," said Youval Rasin, Chairman and Interim Chief Executive Officer.
Firering, an Africa-focused producer of quicklime and critical minerals explorer, also today added an operations update.
Limeco reported record kiln efficiencies in mid-May (Kiln 1: 83.7%; Kiln 2: 79.4% and 78.95% on 20 May), syngas-fired kiln costs per tonne of saleable product have fallen c.25% versus prior months, and modifications to Kilns 3 and 4 are on track for commissioning in Q3 and Q4 2026 respectively.
Commercial traction includes a diversified quicklime, hydrated lime and aggregates product mix, customers across Zambia, Zimbabwe and Malawi including a leading Copperbelt copper producer, and a confirmed order pipeline of c.2,500 tonnes pending dispatch.
In the year to 31 December 2024 Limeco recorded a loss before tax of ZMW 222.44m (US$8.5m) on turnover of ZMW 26.3m (US$1m) and net liabilities of ZMW 2.87bn (US$102.84m), and Firering's exercise increases its entitlement to c.US$43.6m of the ZMW 2.91bn shareholders loan.
One final tranche remains, allowing Firering to acquire an additional 3.3% interest for US$1.03m by no later than 31 July, which would raise its holding to 45.0%.
