First Class Metals PLC the Canada focused precious and base metal explorer, with extensive land holdings in northern Ontario, announces that it has entered into a conditional subscription agreement with The 79th GRP Limited regarding a proposed investment .
- Strategic Deal: The two-phase investment gives 79th Group a 51.2% stake in FCM, ensuring funding through 2025 for exploration projects.
- Mutual Synergy: 79th Group brings financial expertise, while FCM focuses on exploration, aiming for long-term growth despite shareholder dilution.
- Future Plans: News flow and active groundwork are prioritized for Q1 2024 to maximize the investment’s impact.
Highlights:
· Proposed Investment in two stages by Seventy Ninth Group of approximately £2.18 million subject, inter alia, to FCM shareholder approval
· On completion of both stages of the Subscription Agreement, Seventy Ninth Group will own approximately 51.2% of the enlarged share capital of FCM
· Strategic investment to accelerate the development of project portfolio
· Potential for business synergies to create new project acquisition opportunities
· Deal will represent Seventy Ninth Group’s first external equity investment in the exploration sector
James Knowles, Executive Chairman, commented:
“We are delighted to announce the proposed significant investment in First Class Metals by Seventy Ninth Group, a diversified asset manager with a track record of deal selection and value creation. The deal will provide FCM with an enhanced capability to unlock the potential of our northern Ontario assets. This investment demonstrates the strength of our proposition, particularly against the challenging backdrop of UK capital markets. Securing funding of this nature is essential to advancing our exploration efforts and building shareholder value. 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.”
David Webster, Chairman of The Seventy Ninth Group, commented:
“I am delighted that Seventy Ninth Group is making this investment in First Class Metals. 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.”
