First Class Metals plc (FCM) has signed an earn-in agreement with Nuinsco Resources Ltd for a new lithium project in northwest Ontario, Canada.
STRATEGIC
The deal, first announced in December 2022, is for Zigzag which lies less than 100km from Armstrong in the Seymour Lake area close to current and future planned key infrastructure.
The group of claims comprises six units and includes an 800m long and 20m thick mapped structure (the Tebishogeshik occurrence) which is open along strike and to depth.
FCM said that the lithium-tantalum mineralisation was pegmatite-hosted, with reports of “significant” rubidium and caesium mineralisation.
Zigzag already has a valid exploration permit for stripping, trenching and drilling.
Project funding, also previously announced, is from high net worth lithium/battery metals focused investor James Goozee who took the full £300,000 private subscription at 16p per share.
FCM has an option to earn-in up to an 80% interest over the exclusive option held by Nuinsco.
Payments for the exercise of the option include C$500,000 cash and C$250,000 in FCM ordinary shares over approximately 3.5 years.
FCM will also pay C$550,000 for exploration on the property over the same period.
On completion, FCM and Nuinsco will own the Zigzag mining claims on an 80:20 ratio and as a joint venture.
FCM will issue 350,000 new ordinary shares to cover elements of the Nuinsco payments and professional fees.
On admission, the company’s issued ordinary share capital will be 70,794,589 ordinary shares.
“FCM is very enthused with the opportunity to have executed the agreement on this very prospective lithium prospect,” said chief executive Marc Sale.
“Given the worldwide shift toward greener and cleaner economies, the acquisition of additional property assets such as Zigzag Lake is a strategic progression for FCM.”