First Class Metals plc has repaid 5.9 million shares to and borrowed 9.5m from its chairman, raising £256,500 via a 16% discounted private placing of 9.5m shares at 2.7 pence per share.
ONTARIO
In July Mr Knowles loaned two tranches of shares totalling 5,912,059 ordinary shares of £0.001 par value, which were issued to him yesterday.
Following admission FCM has 97,653,420 shares in issue, each with one vote. None of the shares is held in treasury.
For the private placing, also yesterday, the company had insufficient headroom to admit the shares without a published FCA approved prospectus.
FCM proposed that, following admission, chairman and director James Knowles loaned 9.5 million shares for the placing.
The loan involves no payment or security granted to James Knowles or a chargeable fee.
Net proceeds from the 2 August fundraise will help advance the company’s Ontario projects.
Work includes expansion and potential addition of further stripping and channel sampling sites across the 3.7km long Dead Otter trend.
Funds will also be used for exploration activities on FCM’s other core projects in Northern Ontario and for general working capital.