First Class Metals plc (FCM) expects to hold the ‘core’ Sunbeam mine area claims in Ontario as the company prepares for its 2023 exploration programme.
SUNBEAM
FCM acquired Sunbeam in early 2022 and was awarded exploration permits to allow drilling.
The property includes the historic high-grade underground Sunbeam gold mine which operated from 1898 to 1905.
The core of the property comprises 104 unpatented mining claims (104 cells) in Ramsay-Wright Township in North-western Ontario.
The project also includes the ‘English option’ an additional ground (nine unpatented mining claims, 117 cells) wrapping around the west, north, and east sides of the original claims doubling the size of the property.
On 7 February, the company announced a further payment of C$150,000 to Nuinsco Resources Ltd, which takes the sum paid to $550,000 of the $700,000 total acquisition amount and triggers transfer of ownership.
REVIEWS
FCM has started to review historical data, from the early 1900s to 2021, and will focus on drilling, structure and area-wide reconnaissance.
The company expects its conclusion to lead to a more focused and quicker development of its 2023 exploration plans.
An archaeological heritage review has also begun to identify and preserve any specific areas of special significance to the local First Nations Peoples.
Both reviews are expected to complete before the Spring thaw and will be key to FCM’s early-stage planning of high-impact exploration activities on the property.
The company added it had also started a tender process for the Sunbeam 2023 drilling programme.
CONVERTIBLE LOAN NOTE
FCM added it had asked to draw down the second tranche of £250,000 of the Sanderson Capital Partners Ltd convertible loan note (CLN), set at a fixed conversion price of 15p per share.
The money, from the funding announced at the time of the acquisition, will be used for the second Sunbeam payment instalment, costs of the reviews, and part payment for a drilling rig later in 2023.
The tranche is the second of four with two further tranches each at £250,000 of the £1m facility remaining at fixed conversion levels of 19p and 22p respectively.
FCM has issued 200,000 shares to Sanderson in respect of fees.
Conditional on admission, the company’s issued ordinary share capital will be 70,294,589 ordinary shares.
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