First Class Metals Cashed Up for Canadian Exploration

27 June 2023 13:33

As exploration kicks off across its Canadian portfolio, First Class Metals (LSE: FCM) are looking to up the pace, having raised £1.04 million through an oversubscribed conditional placing and subscription and an exercise of warrants to accelerate exploration activities across its holdings in Canada.

Securing Funds

The Placing and Subscription see FCM issuing 9,974,000 ordinary shares, representing approximately 12% of the Company’s enlarged Ordinary Share capital following the Placing and Subscription, at a price of 10 pence per Placing Share to raise £997,400, with Chief Executive Marc J Sale subscribing in a private placement to raise an additional £37,500.

The remaining £51,770.50 will be raised by exercising 517,705 warrants issued at the Company’s award-winning IPO last year, with FCM receiving notice from parent company Power Metal Resources to exercise these warrants at 10p per warrant.

Dealings for the Subscription and Placement as well as the warrants will take place on the 30th of June.

Advancing Exploration

The proceeds raised will primarily be funnelled into putting the drill to the explorer’s extensive Canadian holdings, with a particular focus on a planned 3000 metres of diamond drilling at its flagship North Hemlo Project and its recently acquired Sunbeam property which covers a number of historic gold mines.

First Class is already preparing to begin stripping certain areas of the historic Sunbeam property in anticipation of drilling under a recently revised exploration permit, with the initial focus being placed on the old workings of the Pettigrew Mine, which has seen little drilling historically despite having returned promising hits up to 19.4 g/t Au over 0.63m.

Drilling at North Hemlo meanwhile will focus on the 3km long Dead Otter Trend and will target a historic 3.1 g/t gold showing where visible gold was recently observed in multiple samples, as well as a recently uncovered 19.6g/t Au target, with the Company now awaiting the approval of a recently lodged exploration permit to begin stripping the Project.

Excess funds from the raising will also be put towards advancing exploration at the ZigZag hard lock lithium project it acquired earlier this year, which hosts a 800m long lithium-tantalum pegmatite occurrence showing grades up to 3.55% Li20, with the Company determined to bring the promising project to drill ready status by the end of the current field season.

Looking Ahead

Proceeds from the raising will also give the Company additional working capital, which will be pivotal as it works to bring at least four of its key properties to drill-ready status by the end of the current field season.

The Company said it was pleased to be able to raise so much in what has been a challenging market for junior exploration.

“The swiftness and enthusiasm with which this placing was undertaken robustly support the Company’s exploration policy and the success demonstrated so far in our exploration strategy,” Chief Executive Marc J Sale Said.

“These funds will allow significant advancement of two of the prospects on two of out key Properties as well as allow us to progress to drill ready on the lithium focus and other exploration areas of merit.”

FCM’s London Stock Exchange-listed share price is currently selling at 10.25 pence (1:32 pm UTC+ 8 hours).

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