Firering Strategic Minerals PLC (AIM:FRG) shares moved higher in Wednesday's early deals after it announced a US$1 million cash settlement from Skylark Minerals Limited, to resolve outstanding debts owed by Ricca Resources.
The agreement also entitles Firering to further proceeds via a shareholder distribution from Ricca’s A$4.4 million asset sale.
Completion of the settlement is expected following Ricca shareholder approval at an upcoming extraordinary general meeting.
“This is a significant and timely transaction for Firering, delivering a clear cash outcome that strengthens our financial position and supports our strategic priorities,” said Yuval Cohen, Firering chief executive.
Firering intends to use the proceeds to fund the next tranche of its Limeco Resources option, increasing its stake from 30.7% to 36.2%.
In London, Firering shares were up 21% changing hands at 2p each in Wednesday's early deals.