First Class Metals plc has secured a proposed £2.18 million investment for a 51.2% ownership via a shares subscription from Seventy Ninth Group Ltd.
SUPPORTIVE
The two-stage subscription will be for a total 128,500,000 ordinary shares of £0.001 at 1.7p per share.
The two stages comprise 78,552,084 and 49,947,916 shares respectively, subject to shareholder approval.
FCM, a spin-out from Power Metal Resources plc, holds lithium, rare earth, base and precious metals projects in Ontario, Canada.
“This investment demonstrates the strength of our proposition, particularly against the challenging backdrop of UK capital markets,” said executive chairman James Knowles.
“With the backing of Seventy Ninth Group, a supportive partner with global reach, we are well-positioned to drive forward our projects efficiently and responsibly.”
Seventy Ninth currently holds no shares in FCM but lent £500,000 in two tranches in June and October 2024.
In June the investor also purchased FCM’s McKellar gold-VMS and Enable gold-silver properties for a total £270,000.
FCM added that the loans plus accrued interest would be capitalised by new shares as part of the subscription.
Following issue of the stage II shares, Seventy Ninth will receive 64,250,000 warrants in FCM exercisable at 5p within three years of issue, and 64,250,000 warrants exercisable at 10p within five years of issue.
COMPANY MOVES
On admission of the first tranche shares FCM will appoint Seventy Ninth’s chairman David Webster as a director and non-executive chairman of FCM.
Current executive chairman James Knowles will step down to become an executive director.
Chief executive officer Marc Sale will retain his role and cease to be a director.
Mr Webster said: “As an international conglomerate, we will utilise our global presence to add value across the portfolio and apply the full support of the group’s expertise in developing and financing assets.
“As we already hold exploration projects in the Republic of Guinea and Ontario, Canada, this investment strengthens our position in the global mining industry whilst giving us increased exposure to a top-tier mining jurisdiction.”