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First Class Metals initiates multiple asset sales process with Seventy Ninth Resources

9 April 2024 16:43

First Class Metals PLC (LSE:FCM) has announced the initiation of discussions with Seventy Ninth Resources Limited regarding the potential disposal of certain First Class Metals’ properties.

The negotiation process with Seventy Ninth Resources not only validates First Class Metals’ business model but also underscores its effectiveness in acquiring, enhancing value, and monetising assets, thereby emphasising the potential value of its property portfolio.

Collaborative commitment

First Class Metals’ is actively seeking mutually beneficial synergies with Seventy Ninth Resources to further expand its existing portfolio of natural resources assets.

With Seventy Ninth Resources’ plans to list on the Toronto Stock Exchange Venture in 2024, both entities remain committed to exploring avenues for further collaboration and strengthening their relationship.

Both companies are actively working to finalise commercial Heads of Terms, with additional announcements forthcoming as progress continues.

About Seventy Ninth Resources

Seventy Ninth Resources, a division of the Seventy Ninth Group, stands out as an award-winning asset management firm led by entrepreneur Dave Webster and his sons, Jake and Curtis Webster.

Specialising in the acquisition, management, and development of coveted assets in the natural resource sector, Seventy Ninth Resources has been instrumental in unlocking opportunities within the Republic of Guinea since 2011.

With a dedicated operational team of 15 members in-country, the company has fostered strong ties with local communities, granting them unique access to promising areas for gold and diamond mining.

Seventy Ninth Resources leverages local insights and industry expertise, boasting a strong board and in-country team of seasoned geologists, field consultants, and ESG specialists, while partnering with industry leaders like SRK Exploration Services and The MSA Group to drive targeted exploration efforts and advance its mission of sustainable resource development.

CEO commentary

Marc. J Sale, CEO of First Class Metals, expressed his optimism regarding the initiation of discussions.

“The initiation of these discussions is a significant milestone for First Class Metals. The Potential Transaction validates the business model we at First Class Metals have been expounding. The collaboration with a company of Seventy Ninth Resources’ impressive calibre supports our assertion of the value of our properties. The interest shown by Seventy Ninth Resources confirms First Class Metals’ belief that the current market capitalisation of the Company does not fully reflect the value of the properties in our portfolio and their potential to deliver.

Sale also acknowledged the contribution of partners like Emerald Geological Services to First Class Metals’ success and expressed eagerness to collaborate with Seventy Ninth Resources in both the potential transaction and future endeavours.

“This belief is further supported by the significant upside that our successful exploration activities have achieved since the IPO, for that I am indebted to Bruce at Emerald Geological Services.

“I look forward to working with Natalie Bellis, CEO, and the wider team at Seventy Ninth Resources, not only to progress the Potential Transaction but also in future collaboration. We will provide further updates as more details become available. This milestone marks a crucial moment for First Class Metals, and our focus remains on maximising value for our shareholders throughout the entire process,” Sale added.

Natalie Bellis, CEO of Seventy Ninth Resources, echoed Sale’s sentiments, highlighting the strategic importance of partnering with First Class Metals.

“This is an incredibly exciting move for Seventy Ninth Resources and continues our strategic development of building out a successful pipeline of data-verified assets, as well as helping in preparation for our proposed IPO later this year. By partnering with companies such as First Class Metals, we are continuing to create multiple value points for the business and deliver on its corporate vision,” she stated.

FCM’s London Security Exchange-listed share price has risen 5.08% today and is currently trading at 3.10 GBX (04:45 pm UTC+ 8 hours).

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