First Class Metals plc has signed a 30-day exclusivity agreement for a 100% earn-in to the Kerrs gold property in the Larder Lake mining division, northeastern Ontario.
STRATEGIC
The company, currently finalising commercial terms with the Canadian vendor, said that the project held a “historic resource estimate of 386,467oz gold as per the NI-43-101 standard”.
If the transaction proceeds, the property will be FCM’s third 2023 addition to its portfolio following the Quinlan lithium and McInnes Lake gold deals.
The company has also received C$212,780.03 as credit from goods and services tax / harmonised sales tax for last year, which follows the recent C$200,000 grant for work on the Zigzag property.
Executive chairman James Knowles added that the refund strengthened FCM’s financial position, giving confidence to pursue opportunities and to start the planned 2024 field programme.
“During times of uncertainty and market downturns, such as those we are currently witnessing with junior metal explorer stocks, there is indeed a unique opportunity for strategic investment.
“First Class Metals recognises this opportunity and believes in the proactive approach of expanding its portfolio with quality assets available at distressed prices.
“This approach allows the company to benefit from potential appreciation in asset value as market conditions stabilise and improve.”
He added that FCM would sell certain assets when the time was right to generate capital and maximise investment returns.