By Anthony O. Goriainoff

Shares in Firering Strategic Minerals PLC rose Wednesday after the company said it had entered into an agreement with Ricca Resources Ltd. which encompasses an investment of up to $18.6 million to develop its Atex lithium-tantalum project, and exploration license, in Ivory Coast.
Shares at 0912 GMT were up 4.10 pence, or 47%, at 12.75 pence.

The London-listed mining company said Ricca’s investment will reduce its funding risk through studies and toward production. It added that it will also reduce capital costs and that it brings the support of Ricca’s management team who have recent experience developing a lithium asset in west Africa.
The company said Ricca will pay $1 million in cash and $600,000 in Ricca shares. Furthermore Ricca will complete a four-stage earn-in of up to 50% of the Atex project through the funding of up to $17 million so as to achieve a definitive feasibility study on the project.
“I believe that reaching this agreement is a fantastic result for our and Ricca’s shareholders, and provides a real opportunity for Firering and Ricca to fast track the project, against a backdrop of surging demand for lithium,” Chief Executive Yuval Cohen said.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com