79th Group – Strategic Funding
Issue of Equity
First Class Metals PLC, the UK-listed metals exploration company focused on unlocking the value of its extensive land holdings in northern Ontario, Canada, is pleased to announce that The 79th GRP Ltd (“79th Group”), has increased its loan to the Company by £270,000, reinforcing the strategic partnership that has been developing between the two companies. This additional funding builds on the strong relationship already established and marks an exciting new phase of collaboration.
Key Highlights:
· Existing Loan with 79th Group increased from £230,000 to £500,000: This additional funding comes as a further demonstration of the 79th Group’s commitment to supporting FCM’s strategic goals and ongoing exploration initiatives.
· Enhanced Partnership: The Company is delighted to be deepening its relationship with the 79th Group, which continues to conduct detailed due diligence on other FCM assets, opening the potential for additional future transactions.
· Exploration Acceleration: Funds will be allocated towards advancing key projects within the FCM portfolio, as the Company remains focused on driving forward exploration activities across its core North Hemlo & Sunbeam properties.
Loan Facility Update:
The new loan agreement increases the total facility from £230,000 to £500,000, to be drawn in a single tranche. Key terms of the loan include:
I. Repayment Date: The loan is repayable on 25 May 2025.
II. Interest Only: Interest will be paid at a 15% annual rate throughout the term.
III. Secured Facility: The loan is secured by a debenture over the assets of First Class Metals PLC.
IV. No Equity Conversion: The loan does not include any conversion rights into equity.
For more details on the original loan facility, please refer to the announcement dated 13 June 2024. LSE:FCM – First Class Metals – Asset Sales & Funding (firstclassmetalsplc.com)
James Knowles, Executive Chairman, commented:
“This additional funding from the 79th Group not only highlights their confidence in our assets but also strengthens our mutual relationship, a partnership we believe will bring long-term benefits to both companies. We are pleased to see this continued commitment and are optimistic about future collaborations that will further support the growth and development of our portfolio. This latest financing underscores the validity of our incubator-style strategy, where we actively progress assets along the value chain while efficiently managing our resources.”
Looking Forward:
With gold prices maintaining strong levels and the global demand for critical and base metals rising, FCM is in a prime position to capitalise on its exploration efforts. The deepening partnership with 79th Group not only validates our strategy but positions us strongly for further growth and value creation. As both parties explore new opportunities, we are excited about the prospects this collaboration will continue to unlock.
The Board is committed to ensuring that our shareholders and stakeholders benefit from these developments, with the focus firmly on unlocking the potential of our high-quality assets, and the strategic backing of 79th Group is crucial to realising this vision.
We look forward to providing further updates as we move forward into this exciting new phase.
Seventy Ninth Resources CEO, Natalie Bellis, added:
We are very pleased to continue our collaboration with First Class Metals. Our deepening partnership aligns with our long-term strategy of internationally expanding our footprint in quality mining projects. We remain highly optimistic about the opportunities ahead and will continue to work closely with FCM to maximise these assets and grow the portfolio collectively.
Issue of Equity:
Kerrs Gold First Share Option Payment
423,570 new ordinary shares of £0.001 (“Shares”) are being issued to the owners of the Kerrs Gold Option in respect of the first share based payment to the Kerrs Gold ‘option to earn in’ as set out in the news release of 22 April 2024, LSE:FCM – First Class Metals – Kerrs Gold Property Earn-In Agreement Signed (firstclassmetalsplc.com).
Application is being made for the 423,570 Shares to be admitted to the Official List and to trading on the Main Market of the London Stock Exchange which is expected to be on or around 11 October 2024. These Shares rank pari passu with the existing ordinary shares of the Company.
Total Voting Rights
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, including the issue of the Shares, the Company’s issued share capital consists of 98,076,990 Shares, each with one voting right. The Company does not hold any Shares in treasury. Therefore, the total number of voting rights in the Company is 98,076,990.The above figure of 98,076,990 should be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are required to notify their
interest in, or a change to their interest in, the share capital of the Company under the Financial
Conduct Authority’s Disclosure Guidance and Transparency Rules.
Ends
For Further Information:
Engage with us by asking questions, watching video summaries, and seeing what other shareholders have to say. Navigate to our Interactive Investor hub here: Home | First Class Metals (firstclassmetalsplc.com)
For further information, please contact:
James Knowles, Executive Chair
Email: JamesK@Firstclassmetalsplc.com
Tel: 07488 362641
