Firering Strategic Minerals announced on Monday that its investee, Limeco Resources Ltd, is set to generate positive cash flow due to a newly signed services agreement. Firering, which has a 21% stake in Limeco with an option to increase it to 45%, focuses on mining operations in Zambia and Ivory Coast.
Limeco Resources is on track to become Zambia’s largest quicklime producer once fully operational. The company has secured a logistics services agreement with a major multinational commodity trading firm, expected to generate annual revenue between USD 600,000 and USD 720,000. This agreement will enable Limeco to achieve positive cash flow even before it begins quicklime production, which is scheduled to start in the fourth quarter of 2024.
Yuval Cohen, Chief Executive Officer of Firering, expressed optimism about the deal, noting that the immediate cash flow from the logistics services aligns with Limeco’s strategy to diversify its revenue streams, aiding the development of its primary quicklime project. Additionally, Firering mentioned ongoing negotiations with significant copper producers regarding the sale of quicklime, with offtake agreements anticipated as operations scale up in the coming months.
Firering Strategic Minerals plc (LON:FRG) is an AIM-quoted mining company focused on becoming a near-term cash generating producer of Quicklime, through their Limeco Project in Zambia, whilst at the same time progressing with the exploration and development of their Atex Lithium Project, Côte d’Ivoire.
