Firering acquires 20m Ricca shares as part of settlement

14th Mar 2024 12:36

(Sharecast News) - Exploration company Firering Strategic Minerals announced the acquisition of 20 million shares in Ricca Resources on Thursday.

The AIM-traded firm said the shares were obtained at an issue price of five Australia cents (2.6p) each, for a total value of AUD 1m.

It said the transaction was a pivotal step following the binding and definitive earn-in agreement, valued at $18.6m, which was initially announced on 2 November 2022.

The agreement was geared towards advancing the Atex lithium-tantalum project and the adjacent Alliance exploration licence, pending issue, situated in Côte d'Ivoire.

Firering said the issue of the Ricca shares stemmed from a clause in the agreement triggered by Ricca's failure to complete an initial public offering on the ASX by 31 December 2023.

The shares were issued at a pre-money value of AUD 7.96m, reflecting Ricca's value during its latest funding round in May 2023.

Due to the settlement, Firering now held 20 million shares in Ricca, constituting 11.2% of Ricca's issued share capital.

At 1203 GMT, shares in Firering Strategic Minerals were down 3.18% at 3.05p.

Reporting by Josh White for Sharecast.com.