Yuval Cohen, CEO of Firering Strategic Minerals explained that under the agreement, Ricca Resources will take stakes in lithium-tantalum prospects in Côte d’Ivoire. $17 million will be allocated to the development of a definitive feasibility study for the Atex Project and the adjacent Alliance licence in return for 50% of Firering’s interests which total 77% and 51% in the projects respectively.

Lithium supply chains

The remainder will be $0.6m in Ricca shares and a $1m cash payment. Any additional funding required to take the projects to DFS level will be financed equally between the two companies. Lithium supply chains are complex and commonly global in their extent, with steps that include exploration, mining, processing, manufacturing, use and recycling. The continent of Africa has significant natural lithium resources, which may provide an opportunity for many African countries to contribute to meeting increased demand whilst also supporting economic growth.

Lithium is used in the manufacture of batteries for electric vehicles, but the mineral’s supply has been the focus of attention for several years with commentators saying not enough resources of the mineral were in development. Many African countries (most notably Zimbabwe, Namibia, Ghana, Democratic Republic of Congo and Mali) have lithium resources and the potential for lithium mines. However, there is much less engagement in critical stages further along the supply chain.

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