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Ricca and Firering to advance Atex Lithium-Tantalum Project

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Global Mining Review,


Ricca Resources Ltd has entered into binding and definitive agreements with Firering Strategic Minerals plc to advance the Atex Lithium-Tantalum Project and the adjacent Alliance exploration licence in Côte d’Ivoire.

Highlights:

  • Agreement entered into with Firering Strategic Minerals plc to fund the advancement of the Atex Project and adjacent Alliance licence (once granted) in Côte d’Ivoire for up to US$18.6 million.
  • The agreement will combine Ricca and Firering’s shared exploration and in-country expertise to accelerate the development of the project towards production, including defining a maiden mineral resource estimate (MRE) and feasibility studies.
  • A total of US$18.6 million to be paid by Ricca, pursuant to the agreements, which includes consideration paid to Firering:
    • US$1 million upfront cash consideration.
    • Ricca shares to a value of US$0.6 million upon the company’s intended IPO on the ASX.
    • Ricca to complete a four-stage earn-in of up to 50% of the project through funding of up to US$17 million, with the aim of achieving a definitive feasibility study (DFS) on the project.
  • Ricca has agreed to fund a further US$2 million, beyond the US$17 million, to also be spent to advance the project, if the JORC inferred MRE surpasses 20 million t @ 1.0% Li2O.
  • Any additional expenditure beyond the earn-in funding to be spent on the project will be funded equally between Ricca and Firering.
  • The partnership marks the company’s first investment into green metals, increasingly critical to the growing electric vehicle (EV) sector, diversifying beyond its extensive gold portfolio.
  • The company’s board and management team possesses extensive experience in lithium and exploration in Côte d’Ivoire.
  • Côte d’Ivoire to benefit from the development of its first lithium project.

Commenting, Stu Crow, Chairman of Ricca Resources, said:

“Today’s Agreement and strategic investment mark a pivotal moment in Ricca Resources’ strategy to enhance, de-risk and diversify our portfolio into green commodities, particularly lithium.

“We are delighted to be partnering with Firering, which is now awaiting assay results following the recently completed 3000 m drilling programme that has identified visible spodumene. Working with Firering and applying proven exploration methods, we will accelerate the advancement of the project to identify a maiden resource to take through studies and develop.

“I’d like to thank our new partner Firering for providing us with the opportunity to be part of this compelling project. Our team brings extensive experience operating in West Africa, particularly in Côte d’Ivoire, and in lithium exploration and we, therefore, believe that the partnership can drive significant value for both companies.

“We look forward to playing our part in Côte d’Ivoire’s first lithium project and working with Youval and his team as we undertake grassroots exploration and move to define our resource.”

Commenting, Youval Rasin, Chairman of Firering, said:

“Firering is pleased to be partnering with Ricca to unlock the maximum potential of our Atex Lithium-Tantalum Project, which demonstrates the potential to be a stand-out lithium asset. This accelerated exploration pathway with an experienced partner, in the form of Ricca, removes funding risks for Firering and its shareholders, while de-risking project delivery through the use of proven lithium exploration methods.

“I would like to thank Yuval Cohen and our team on the ground in Côte d’Ivoire and all of our supportive stakeholders for their efforts and ongoing support in the exploration of this project. We will continue to update the market on this exciting new phase in due course.”

Read the article online at: https://www.globalminingreview.com/mining/03112022/ricca-and-firering-to-advance-atex-lithium-tantalum-project/

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This article has been tagged under the following:

African mining news Lithium mining news