First Class Metals PLC (LON: FCM) the UK listed company focused on the discovery of economic metal deposits across its exploration properties in Ontario, Canada, is pleased to announce the successful completion of an option to purchase two properties with highly anomalous Rare Earth Elements (“REE”) samples.
Highlights
· FCM expands its exploration portfolio to include Rare Earth Elements complementing its core gold exploration strategy in Ontario
· The option terms for both properties are highly favourable in year one, allowing FCM to assess REE potential with limited upfront financial exposure.
· The two optioned properties, Block H (~18km²) and Block F (~33km²), are located within one of the most anomalous REE regions identified in the Ontario province-wide lake sediment geochemical database.
· Initial exploration planned for Spring 2026 will focus on ground-truthing historic anomalies, validating assays, and refining geological controls on mineralisation.
· Both blocks are believed to lie within the traditional territory of Lac des Mille Lacs First Nation, with whom FCM already maintains a constructive working relationship.
· The Company intends to rename Block H and Block F via an online poll, enhancing stakeholder engagement and market visibility.
· Global REE supply remains highly concentrated, with China dominating both production and downstream processing, driving Western governments to prioritise secure, allied-source supply chains.
· Thorium-associated REE systems are increasingly attracting attention due to their potential to host light and heavy REE assemblages, which are essential for high-value permanent magnet applications.
Marc J. Sale CEO First Class Metals commented:
“Gold remains the cornerstone of FCM’s exploration strategy and continues to underpin our approach to value accretion to FCM’s Ontario properties. However, against a backdrop of accelerating global demand for Rare Earth Elements, and a clear strategic shift by allied governments towards securing critical minerals, the opportunity presented by these two properties is particularly compelling. Their geochemical and geographic location allows FCM to gain meaningful exposure to this evolving sector while maintaining our gold-focused exploration strategy and Ontario focus.”
Option Terms
First Class Metals has entered into option agreements to acquire a 100% interest in both Block F and Block H (each subject to a production royalty). The options are structured over a three-year period and provide the Company with the ability to evaluate the properties with limited upfront financial commitment.
Block F
To exercise the option over Block F, the Company must make total cash payments of CAD $73,500 and issue CAD $60,000 in ordinary shares of the Company (“Shares”) to the optionors over three years. Cash payments comprise CAD $9,500 payable within 30 working days of signing the agreement (the “Effective Date”), CAD $10,000 payable on the first anniversary of the Effective Date, CAD $16,000 on the second anniversary, and CAD $38,000 on the third anniversary. The share consideration of CAD $60,000 is payable on the first anniversary of the Effective Date.
|
Due Date |
Share Payments |
Cash Payment (CAD) |
|
Within 30 working days of signing the Agreement |
Nil |
$9,500 |
|
On the 1st anniversary of the Effective Date |
$60,000 in shares |
$10,000 |
|
On the 2nd anniversary of the Effective Date |
Nil |
$16,000 |
|
On the 3rd anniversary of the Effective Date |
Nil |
$38,000 |
|
Total |
$60,000 in shares |
$73,500 |
Block H
To exercise the option over Block H, the Company must make total cash payments of CAD $67,600 and issue CAD $30,000 in Shares to the optionors over three years. Cash payments comprise CAD $5,600 payable within 30 working days of signing the agreement, CAD $8,000 payable on the first anniversary of the Effective Date, CAD $16,000 on the second anniversary, and CAD $38,000 on the third anniversary. The share consideration of CAD $30,000 is payable on the first anniversary of the effective date.
|
Due Date |
Share Payments |
Cash Payment (CAD) |
|
Within 30 working days of signing the Agreement |
Nil |
$5,600 |
|
On the 1st anniversary of the Effective Date |
$30,000 in shares |
$8,000 |
|
On the 2nd anniversary of the Effective Date |
Nil |
$16,000 |
|
On the 3rd anniversary of the Effective Date |
Nil |
$38,000 |
|
Total |
$30,000 in shares |
$67,600 |
Macro Context – Rare Earth Elements
Rare Earth Elements (“REE”) are widely recognised as strategically critical commodities, forming essential inputs for electric vehicles, renewable energy technologies, defence applications, semiconductors and high-performance permanent magnets. Global demand for REE is forecast to grow materially.
As a result, REE continue to attract increasing attention from governments and industry seeking to secure long-term supply.
Canada has formally identified REE as priority critical minerals and is positioning itself as a key allied jurisdiction capable of supporting secure, transparent and responsible supply chains. Federal and provincial initiatives are focused on encouraging domestic exploration and development, particularly in established mining regions with strong infrastructure and regulatory frameworks such as Ontario.
Thorium-associated REE systems, including those linked to batholithic and pegmatitic environments, are increasingly viewed as prospective exploration targets. FCM’s entry into REE exploration in northwest Ontario aligns with this national strategic focus, while complementing the Company’s core gold exploration activities within a Tier-1 mining jurisdiction.
The two claim blocks are located in the Atikokan area of northwest Ontario in relative proximity to the Sunbeam property, see Figure 1. Access to both blocks is excellent whilst forestry track on the properties allows internal access.
Figure 1 showing the locations of Blocks F and H with relevant topographic information, note access as well as proximity to the Sunbeam property.
The decision to acquire the two blocks from a local prospector was based on the historic (Ontario Geological Survey) lake sediment programmes. To date no groundwork has been conducted by FCM. However, PowerMax Minerals (CSE:PMAX) who also acquired blocks in the area from the same vendor have conducted an initial prospecting programme.
The Company has initiated a detailed data review of all available material in advance of a prospecting orientated field programme.
The White Otter Batholith, north of Atikokan, Ontario represents one of the most anomalous REE areas in the province-wide 48,367 samples lake sediment database. There are 26 samples in the database with partial total REE>500ppm of which 9 (35%) are in the White Otter area, a number of which as covered by the newly optioned FCM claim blocks, see Figure 2.
Figure 2 location of blocks H & F relative to the assays from the province-wide lake sediments survey.
The White Otter batholith is a Thorium (Th) high. Anomalous REE’s in lake sediments in the area are often associated with elevated Th.
Figure 3 Block H, 81 cells, (4 multi cells) 1,712 Ha. Note the available access tracks
REE anomalies occur within and around the eastern margin of the batholith within a 5km radius. It is possible that the White Otter batholith is a source for REE pegmatites or related mineralization in the area. Block H is in the core of the White Otter REE element anomaly, see Figures 2,3 and 4.
Figure 4 Block H showing the anomalous Be and Th lake sediment samples
Block F sits astride what is interpreted as a major geological regional fault. This fault is emphasised by the topography and the anomalous lake sediment results further highlight this prospective feature. Satellite imagery of the area also shows possible pegmatite dykes. See Figures 3-5
Figure 5 Block F, 7 multicell claims, 158 cells, area 3,332Ha, note the northeast orientation of anomalous assays, possibly related to a major regional fault within the White Otter Batholith
Figure 6 Block F showing the anomalous Be and Th lake sediment samples
Figure 7 showing Block F with possible pegmatites close to overlimit anomalies- examples arrowed
FCM is now engaged in a interrogation of other historic data to compile a ground target list for the Spring exploration programme.
ENDS
Qualified Person
The technical disclosures contained in this announcement have been drafted in line with the Canadian Institute of Mining, Metallurgy and Petroleum standards and guidelines and approved by Marc J. Sale, who has more than 30 years in the gold exploration industry and is considered a Qualified person owing to his status as a Fellow of the Australian Institute of Mining and Metallurgy.
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: https://firstclassmetalsplc.com
For further information, please contact:
James Knowles, Executive Chair
Email: JamesK@Firstclassmetalsplc.com
Tel: 07488 362641
Marc J Sale, CEO and Executive Director
Email: MarcS@Firstclassmetalsplc.com
Tel: 07711 093532
