First Class Metals announce asset sale to fund further exploration

14 June 2024 13:31

First Class Metals PLC (LSE:FCM) has successfully sold its McKellar and Enable properties to Seventy Ninth Group Limited (“79th Group”) for a combined £270,000. Alongside this sale, FCM has secured a 12-month loan of £230,000 from the 79th Group.

This sale is a part of FCM’s strategy to enhance asset value without diluting shareholder equity. The loan is for a 12-month period, repayable on May 25, 2025, with an interest rate of 15% and is secured by a debenture over FCM’s assets.


Figure 1: First Class Metals recently solidified control over the Kerrs Gold property as well as significant producing mines in the area.

Management commentary

James Knowles, Executive Chairman of FCM, expressed delight with the sale and the additional funding. “We are pleased to announce the successful sale of McKellar & Enable properties for a total of £270,000. The sale along with further debt funding from the Seventy Ninth Group whilst they continue to conduct due diligence over other FCM properties is also most welcome.”

Knowles highlighted the favourable market conditions for precious metals and the potential for further development of FCM’s portfolio.

“The transaction is validation of our early stage ‘incubator’ strategy advancing assets up the value curve resulting in cash without dilution coming onto the balance sheet. With gold prices consolidating near all-time high levels, the portfolio of assets held by First Class Metals is highly attractive for further development.”

Natalie Bellis, CEO of Seventy Ninth Resources, noted the significance of acquiring the McKellar and Enable properties ahead of their public listing. “The concession acquisitions of McKellar and Enable are significant milestones and an exciting step towards building a pipeline of quality, data-verified exploration projects in Canada, particularly as we prepare to list on the TSXV.”

Next steps

Funds from the loan will be used for general working capital and to advance exploration on remaining properties. FCM had recently secured an earn-in agreement for the Kerrs Gold Project, located in Northeastern Ontario, renowned for its historic resource estimate of 386,467 ounces of gold under the NI-43-101 standard.

Seventy Ninth Resources continues due diligence on other FCM assets, as previously announced on April 9, 2024.

FCM’s London Security Exchange-listed share price is currently trading at 2.60 GBX (2:00 pm UTC+ 8 hours).

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