First Class Metals plc has started discussions on a possible sale of certain of its core and non-core properties in northern Ontario.
VALUE
Talks with Southport-based Seventy Ninth Resources Ltd, part of asset manager Seventy Ninth Group, aim to establish a commercial heads of terms.
Seventy Ninth Resources has since 2011 focused on potential gold and diamond mining in Guinea, West Africa and aims to list this year on the Toronto Stock Exchange Venture.
Chief executive Natalie Bellis said that Seventy Ninth was focused on building a successful “pipeline of data-verified assets”.
FCM, which purchased its assets from Power Metal Resources plc before listing in 2022, is exploring for base and precious metals, lithium, tantalum and rare earth elements.
The Blackburn-based company is also looking at “further mutually beneficial synergies” with Seventy Ninth to expand its natural resources assets.
FCM chief executive Marc J Sale added that the potential sale validated the company’s business model.
“The collaboration with a company of Seventy Ninth Resources’ impressive calibre supports our assertion of the value of our properties.
“The interest shown by Seventy Ninth Resources confirms FCM’s belief that the current market capitalisation of the company does not fully reflect the value of the properties in our portfolio and their potential to deliver.
“This belief is further supported by the significant upside that our successful exploration activities have achieved since the IPO.
“This milestone marks a crucial moment for FCM, and our focus remains on maximising value for our shareholders throughout the entire process.”
Founded by Dave Webster and sons Jake and Curtis Webster, Seventy Ninth Group also has more than 30 years’ experience within real estate.