First Class Metals plc’s non-executive chairman David Webster, also chairman of its largest investor The Seventy Ninth Group, has resigned following police fraud allegations about the group.
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Mr Webster has also resigned as a director with the Ontario-focused explorer, a spin-out from Power Metal Resources plc.
Companies House records that as at 31 March 2025, Mr Webster owns 75% or more of Seventy Ninth’s shares and voting rights.
FCM today said: “Mr Webster has decided to focus his efforts towards The Seventy Ninth Group, particularly to address the recent allegations made by the City of London Police concerning the group.
“Whilst Mr Webster was one of the four members of The Seventy Ninth Group questioned by the City of London Police, he was released on bail without charge.”
“Additionally, whilst it remains the intention to complete the second stage of The Seventy Ninth Group’s investment into FCM it will not be proceeding at the current time.”
In December 2024, FCM secured a two-tranche £2.18 million investment for a 51.2% ownership via a shares subscription from Southport-based Seventy Ninth.
FCM’s managing director, James Knowles, will again become executive chairman while Seventy Ninth’s chief operating officer Christopher Johnson is proposed as non-executive director.
Mr Johnson has more than 20 years’ experience in legal practice.
A February police statement regarding the investigation reads: “The City of London Police is investigating a suspected widespread fraud case where a company named the 79th Group is believed to be offering loan notes to investors with a high interest return over a fixed period.
“So far, four people have been arrested in connection with 79th Group.
“A large amount of cash, luxury watches and jewellery were found during searches of properties, all of which were seized.
“All people arrested have been released on bail and enquiries are ongoing.”