First Class Metals PLC, the UK-listed metals exploration company advancing economic metal discoveries across its extensive Canadian Schreiber-Hemlo, Sunbeam, Kerrs and Zigzag land holdings, is pleased to provide an end-of-year shareholder update, reflecting on a pivotal year and looking ahead to an ambitious and transformative 2025.
Dear Shareholders,
As we close 2024, I reflect on a year that has been challenging for small-cap resource companies. Capital markets have been particularly difficult, with limited liquidity and investment opportunities. Despite these headwinds, the conditional investment agreement with The 79th GRP Limited (“79th GRP”), once completed, is expected to position the Company for substantial growth and progress.
With all-time high gold prices and a growing global demand for sustainable energy and technology metals from secure jurisdictions, the macroeconomic environment presents a compelling opportunity for growth. The funding package from 79th GRP positions us to thrive in this favourable landscape, enabling us to capitalise on market dynamics and the potential to achieve significant milestones in 2025. This partnership highlights the strength of our portfolio and underscores our commitment to creating long-term value for our shareholders.
2024: A Year of Pivotal Progress
This year, our efforts culminated in securing the confidence and support of 79th GRP through a conditional subscription agreement. This partnership, once completed, is expected to bolster our financial resources and bring strategic expertise and global reach to support our growth.
Key highlights of this investment include:
- Proposed Investment: A total of approximately £2.18 million in two stages, subject to FCM shareholder approval.
- Majority Stake: Upon completion of both stages, 79th GRP will own approximately 51.2% of the Company’s enlarged share capital.
- Strategic Acceleration: This investment will accelerate the development of our project portfolio.
- Synergies: The potential for business synergies to create new project acquisition opportunities.
- Exploration Sector Debut: This deal marks 79th GRP’s first external equity investment in the exploration sector.
This investment is not just a financial milestone but an important step for FCM, providing resources to support corporate activity and exploration efforts across our portfolio while leveraging the global reach and strategic expertise that 79th GRP brings to enhance our opportunities and market impact.
Highlights
Throughout 2024, we advanced our flagship projects, each progressing towards delivering added value:
- North Hemlo:
- Continued exploration along the “Dead Otter Trend” has elevated it to a high-profile target.
- Confirmed the presence of a 3.7km long gold trend, open along strike, with visible gold observed in multiple grab samples.
- Highlights include assay results of up to 19.6 g/t Au from grab samples, with additional high-grade results of 13.6 g/t Au nearby.
- Structural similarities to Barrick’s Hemlo mine, located 23km to the south, add significant exploration potential.
- Exploration permits are in place, and a comprehensive stripping and channel sampling programme has been initiated to delineate drill targets.
- Full results from the channel sampling and soil sampling on the Dead Otter Trend are expected in the early new year. This remains a priority target for the Company, alongside the Sunbeam project, which are key focuses and priorities for 2025.
- Sunbeam:
- Results from channel sampling at the Roy prospect confirmed high-grade gold mineralisation, including:
- 18.8 g/t Au over 0.3m in a channel sample.
- 6.27 g/t Au over 0.35m in mafic schist with quartz veinlets.
- 4.98 g/t Au over 0.5m in sheared porphyry.
- Sampling at Pettigrew returned encouraging results, including:
- 13.0 g/t Au in a grab sample from quartz rubble.
- 3.5 g/t Au over 0.2m in a quartz vein with galena and chalcopyrite.
- These results highlight the potential for broader mineralised zones and future exploration opportunities.
- Zigzag:
- Results from our inaugural drill programme exceeded expectations, confirming and enhancing the potential of the property.
- Significant assay results included:
- 4.3m @ 1.65% Li₂O, including 1m @ 2.93%.
- 5.0m @ 1.5% Li₂O, including 0.2m @ 5.19% and 5.75m @ 0.21% Rb₂O.
- 6.5m @ 1.09% Li₂O, including 0.5m @ 2.76%.
- Elevated grades of key technology-critical metals, including gallium (Ga), rubidium (Rb₂O), caesium (Cs), and tantalum (Ta).
- Additionally, the Zigzag property’s location benefits from significant local investment in lithium and technology metals processing infrastructure, spearheaded by Green Technology Metals, further supporting the region’s development as a hub for sustainable resource production.
- Kerrs Gold Project:
- Acquired in 2024, the Kerrs Gold Project in Northeastern Ontario holds a historic NI43-101 resource estimate of 386,467 ounces of gold (Au), highlighting its significant potential for future development.
- Located in the prolific Timmins Mining Camp, home to nearby producing gold mines operated by Newmont and McEwan Mining.
- A comprehensive historical data review is planned alongside the interpretation of the new geophysics survey flown in the summer. FCM intends to revisit the drill data with a view to optimising the grade over tonnes.
The Strategic Vision for 2025
As we look ahead, 2025 is set to be a transformative year, with a focus on leveraging the partnership with 79th GRP to drive operational, financial, and strategic milestones. Our goals for the coming year include:
- Accelerated Exploration: Focused efforts on advancing North Hemlo and Sunbeam, enhancing geological understanding and supporting a well-capitalised programme of targeted drilling.
- Strategic Transactions: Exploring opportunities for joint ventures, earn-ins, and other corporate partnerships to unlock further value from our portfolio.
- New Opportunities: Actively seeking promising new mineral properties both within Ontario and globally to expand our portfolio and support our ‘project incubator’ model. With the backing of 79th GRP, we are well-positioned to capitalise on acquisition opportunities that align with our growth strategy and deliver significant shareholder value.
These efforts will be supported by the expertise of our existing management team, whose extensive track record in exploration and operational success provides a strong foundation for future growth. Alongside this, our incoming non-executive chairman, David Webster, will bring additional experience in high-value investments and strategic growth, complementing the team’s capabilities. Together, we are well-equipped to navigate the next chapter and drive FCM’s progression towards becoming a leading exploration company.
Building for the Long Term
The investment by 79th GRP is not just a momentary boost—it is the beginning of a long-term partnership that will shape the future of First Class Metals. With their support and the dedication of our highly experienced team in Canada and the UK, we are well-positioned to deliver value to our shareholders and stakeholders alike.
As we embark on 2025, we are more confident than ever in the strength of our portfolio, the dedication of our team, and the potential of our projects. Together, we will unlock the considerable value that northern Ontario’s mineral resources hold.
Thank You
I would like to thank you, our shareholders, for your unwavering support and trust in First Class Metals. This has been a year of hard work, transformative change, and encouraging progress. We are ready to carry this momentum into 2025 and beyond, ensuring that your investment in FCM delivers significant value.
On behalf of the Board, I wish you and your families a happy and prosperous New Year.
Best regards,
James Knowles
Executive Chairman
First Class Metals PLC
