Firering Strategic Minerals has regained full control of its key lithium-tantalum projects in Côte d'Ivoire following the unexpected withdrawal of its joint venture partner, Ricca Resources.
The company confirmed it received formal notice from Ricca, terminating the earn-in agreement the two parties had entered into in November 2022.
As a direct result of this decision, Ricca has immediately ceased to hold any interest in the Atex and Alliance projects.
Firering now holds its original 90% stake in the Atex project and 51% in the Alliance project, completely free of any previous obligations or rights granted to Ricca.
Critically, the company is under no obligation to refund any of the consideration or expenditures Ricca had made during the partnership.
Furthermore, Firering stated that Ricca now owes the company certain funds that were advanced to keep the projects progressing during the term of the agreement, funds that were slated for reimbursement. Firering is currently in discussions with Ricca to finalise and recover these outstanding amounts. As a lasting vestige of the partnership, Firering will retain its existing 10.6% shareholding in Ricca.
"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,” said Firering chief executive Yuval Cohen.
“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.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
