First Class Metals Completes £603,000 Capital Raise

27 November 2023 11:11

First Class Metals PLC (LSE:FCM) has announced it completed a successful placement raising gross proceeds of £603,000 and satisfying fees of £48,000. The Company has outlined the funds will be used to develop a drill program for its Zigzag lithium and Critical Metals Property and complete the full repayment of the Sanderson Capital Partners Convertible Loan Note (CLN).

A Successful Capital Raise

The placement involved the issue of 11,990,665 ordinary shares of £0.001 par value at a discounted price of six pence per share.

The placing price of the shares represented a 16 percent discount to the mid-market closing price of the Company’s shares on the 21st of November 2023, the date of the arrangement of the Placing.

The balance of the placing proceeds will primarily employed to develop a drilling program at the Zigzag property in Northern Ontario and repay in full the CLN, which stands at £500,000 drawn.

The shares are expected to be issued on or around the 30th of November.

The Zig Zag Property

First Class Metals released promising lithium results from the final samples of phase one exploration at the Zig-Zag Project in Ontario, Canada, inching the Project closer to ‘drill-ready’ status.


Figure 1: Pegmatite K-feld interstitial grey quartz blebs flaky deformed spodumene altered in greenish muscovite, found at the First Class Metals Zig-Zag Project

First Class Metals reported from the 39 samples collected and tested, 19 of them contained over 1% Li2O, and an additional three registered over 0.5% Li2O, with the highest sample recording 2.97% and 2.74% Li2O.

The initial focus of the Company post fund-raising will be to advance exploration activities on this Project, as it awaits the assays from channel sampling, which will provide valuable data to plan its next steps.

Additionally, First Class Metals is working on formulating further operations on this property, with plans to commence drilling activities during the upcoming winter period.

Company Comments

First Class Metals PLC’s Executive Chairman James Knowles said the board thought it was necessary to take advantage of the opportunity to raise funds in a difficult and extremely competitive market to enable the development of the high impact first drill program on the Zigzag Lithium and Critical Metals Property whilst also repaying the outstanding CLN.

“As a company, we understand the importance of maintaining a strategic balance between developing our highly prospective portfolio and effectively managing our available financial resources,” he said.

“We aim to advance our projects to a stage where they become conducive to monetise. This approach ensures that we maximize the potential of our portfolio while optimizing resource allocation. We are dedicated to carefully navigating this balance and strategically driving our company’s growth and success.”

“I am pleased to be able to assist the company at this time by loaning a significant portion of my holdings to First Class Metals. By doing so, I willingly accept the commercial risk associated with this transaction. My decision to make this loan stems from my utmost confidence in the assets held by First Class Metals, as well as the exceptional capabilities of our operational team. I firmly believe that through their expertise and dedication, we will achieve success and deliver value for all stakeholders involved.”

“Furthermore, at this point, the Share Loans will reduce the impact of dilution for all shareholders until the Company is in a position to allot new shares to return the loan and allows all shareholders to benefit from any potential uplift when we have tangible results published, from our more advanced projects.”

FCM’s London Stock Exchange-listed share price is currently selling at 6.35 British pence (11.07am UTC+ 8 hours).

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