Firering Strategic Minerals PLC on Wednesday announced it has entered an agreement with Australian diversified minerals company Ricca Resources Ltd to help advance its lithium projects in the Ivory Coast.

Ricca will invest up to $18.6 million to fund the progression of the Atex Lithium-Tantalum Project and its adjacent Alliance exploration licence, the Ivory Coast-based critical minerals exploration company explained.

Shares in Firering were up 35% at 11.68 pence at midday Wednesday in London.

Firering explained the funding will allow it to fast-track the exploration of the project and secure funding for its development pathway, which will include a maiden mineral resource estimate and a definitive feasibility study.

The investment includes a $1 million cash consideration, $600,000 in Ricca shares, and funding of $17 million.

A further $2 million investment from Ricca will be paid if the project’s maiden mineral resource estimate exceeds 20 million tonnes at 1.0% lithium oxide.

Any additional expenditure will be funded equally between Firering and Ricca.

Under the agreement, Ricca also has the right to acquire up to a 50% interest of Firering interest in the Atex and Alliance projects - which currently stand at 77% of Atex and 51% of Alliance - through a four-phase earn-in.

Chief Executive Yuval Cohen said: ‘The Atex Lithium-Tantalum Project has consistently demonstrated potential to be Côte d’Ivoire’s first lithium mine. Our partnership with Ricca will help to bring this to fruition and our combined expertise will support an accelerated exploration pathway.’

‘The investment by Ricca will reduce our funding risk through studies and towards production. The partnership also reduces capital costs and brings with it the support of a management team at Ricca with highly relevant recent experience developing a West African lithium asset.’

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