First Class Metals plc executive chairman and executive director have lent a total 11,990,665 ordinary shares to the company to raise £603,000 for the company via a placing.
STOCK LENDING
The ordinary shares each of £0.001 par value at a price of 6 pence per placing share represent a 16% discount to the mid-market closing price of FCM’s shares on 21 November, the date of the placing arrangement.
No warrants were issued in connection with the placing.
The company proposed that James Knowles and Ayub Bodi loan the shares because it has insufficient headroom to issue and admit the placing shares without a prospectus approved by the Financial Conduct Authority.
No payment or security is granted to either director other than a pro rata cash fee or, if agreed, shares for each loan equal to 8.25% per annum of the values of the placing shares on the day of placing.
A total 11,990,665 new ordinary shares in the company will be given to Mssrs Knowles and Bodi by 30 June 2024 to replace the lending shares.
To satisfy fees, the placing included 1,940,665 placing shares for professional partners, including Sanderson Capital Partners which has made available to the company a new small non-dilutive working capital facility.
USES
Proceeds will be used to develop a drill programme at the Zigzag lithium-critical metals property in north Ontario and full repayment of the Sanderson convertible loan note, drawn at £500,000.