First Class thrilled to sign an exclusivity agreement for Kerr’s Gold Property

3 April 2024 14:10

First Class Metals (LSE:FCM) has signed an exclusivity agreement with a Canadian vendor for the Kerr’s Gold Property in north-eastern Ontario, boasting a significant historical resource estimate of 386,467 ounces of gold.

The agreement was facilitated by a substantial Goods and Services Tax (GST) credit, amounting to an additional CAD$212,780.03, which expedited the process.

Financial boost

This development follows closely on the heels of First Class securing the CAD$200,000 Ontario Junior Exploration Program Grant from the Canadian Ministry of Mines for the Zigzag lithium and critical metals property.

James Knowles, Executive Chairman of First Class Metals, emphasised that both the GST credit and the grant serve to fortify the company’s position and pave the way for further exploration endeavours.

“Additionally, we are pleased to receive a GST/HST refund of $212,780.03 for the full year 2023,” he said.

“This refund further strengthens our financial position and provides us with confidence to pursue opportunities like the Kerrs Gold Property and the other recent additions to the portfolio.

“These payments also give us the confidence to start the planned 2024 fieldwork program,” Knowles commented.

Opportunity for investment

Mr. Knowles added that amidst the current uncertainty and market downturn, shareholders of junior metal explorer stocks are encountering hidden opportunities.

“During times of uncertainty and market downturns, such as those we are currently witnessing with junior metal explorer stocks, there is indeed a unique opportunity for strategic investment,” he said.

“First Class Metals recognises this opportunity and believes in the proactive approach of expanding its portfolio with quality assets available at distressed prices.”

Kerrs Gold exclusivity

The 30-day exclusivity agreement inked by First Class for the Kerr’s Gold Property aligns perfectly with Mr. Knowles’s perspective.

The company is currently in the process of finalising commercial terms with a Canadian vendor to secure an ‘earn in’ agreement, granting them full ownership of the property in the Larder Lake Mining Division.

Mr. Knowles highlights the significance of the Kerr’s Gold Property, stating, “Located in a highly productive gold mining district with numerous active mines, the property’s low-cost entry and substantial NI-43-101 historic reportable resource of 386,467 ounces of gold make it an incredibly exciting prospect, especially with the price of gold continuously reaching new all-time highs.”

Company commentary

Mr. Knowles anticipates that the Property will enhance the significance of First Class’s portfolio and strategically position the company to optimise capital and returns on investment.

“By capitalising on the market turbulence and acquiring undervalued assets, First Class Metals can fortify its portfolio and position itself for future growth,” he explained.

“This approach allows the Company to benefit from potential appreciation in asset value as market conditions stabilise and improve.”

Additionally, First Class Metals recognises the importance of divestment in portfolio management.

“When the time is right by selectively divesting certain assets, the Company can generate capital and maximise returns on investment.

“This disciplined approach to divestment ensures that First Class Metals remains agile and focused on maintaining a strong and balanced portfolio,” Knowles added.

FCM’s London Security Exchange-listed share price is currently trading at 0.027 pence (02:00 pm UTC+ 8 hours).

The Market Bull Logo


Join our mailing list to receive the latest stock market news.

You have Successfully Subscribed!

Share This