Aim-listed Firering Strategic Minerals has reported that it has begun hot commissioning of Kiln 2 at its producing lime asset Limeco Resources, in Zambia, which is expected to take between 10 and 14 days to complete.

Once commissioning is complete, Firering says production from Kiln 2 is expected to ramp up over an about three-month optimisation period.

The company expresses that this represents an important milestone in increasing Limeco’s production capacity and advancing the business toward steady-state production.

Further updates will be provided as commissioning of Kiln 2 progresses and the optimisation phase advances.

Meanwhile, in line with the Limeco option agreement, Firering says it has notified the relevant parties of its intention to exercise the next tranche of the option, which will increase its shareholding from 30.7% to 36.2%.

The cash consideration to be paid amounts to $981 667 and Firering says this decision reflects the board’s continued confidence in Limeco as production ramps up.

In its most recent published accounts – financial year ended December 31, 2024 – Limeco posted a loss before tax of $8.5-million on turnover of $1-million.

As at December 31, 2024, Firering points out that Limeco had net liabilities of $102.84-million.

Liabilities included $104.55-million owing to shareholders. Following the exercise of the third tranche of the option, Firering says it increases its right to 36.2% of the shareholders loan.

Further, Firering also reports that, as Limeco continues to represent the company’s primary value driver, Yuval Cohen has stepped down with immediate effect from his roles as CEO and director of Firering to focus exclusively on his position as CEO of Limeco.

The company explains that Cohen has been closely involved in Limeco’s development to date, adding that his full-time focus is expected to strengthen operational execution and accelerate the business’s commercial progress.

Firering chairperson Youval Rasin has been appointed interim CEO of Firering while a permanent replacement is sought.

“This is a pivotal period for Firering as Limeco enters its production growth phase. Increasing our ownership, strengthening leadership at the asset level and commencing hot commissioning of Kiln 2 demonstrate our clear focus on scaling our flagship operation.

“With Yuval now focused entirely on leading Limeco on the ground, we are well positioned to optimise output, enhance operational performance and unlock meaningful shareholder value.

“I would like to thank Yuval for his significant time, commitment and contribution to the board, and I look forward to continuing to work closely with him as he drives Limeco forward,” says Rasin.