REG - First Class Metals - Initiation of Multiple Asset Sales Process

FIRST CLASS METALSAnnouncement

09/04/2024 07:00

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RNS Number : 7597J  First Class Metals PLC  09 April 2024

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

 

FIRST CLASS METALS PLC

9 April 2024

Initiation of Multiple Asset Sales Process with

Seventy Ninth Resources

 

 

First Class Metals PLC ("First Class Metals" "FCM" or the "Company") the UK
listed metals exploration company seeking economic metal discoveries across
its extensive Canadian, north Ontario land holdings, is pleased to announce
that it has entered into discussions with Seventy Ninth Resources Limited
 ("Seventy Ninth") which may result in the disposal of certain FCM properties
("Potential Transaction").

 

Highlights

 

·      Discussions commenced regarding a number of FCM's core and
non-core assets with Seventy Ninth Resources Limited, a division of the
Seventy Ninth Group, who are a leading UK asset management company.

 

·      This negotiation validates FCM's business model to acquire, value
add and monetise its assets.

 

·      In addition, the Company is also actively exploring further
mutually beneficial synergies with Seventy Ninth Resources, to further expand
on their existing portfolio of natural resources assets. Following the
announcement of their intent to list on the Toronto Stock Exchange Venture in
2024, Seventy Ninth Resources is committed to exploring opportunities to
enhance the relationship between both entities.

 

·      Seventy Ninth Resources and FCM are working towards establishing
commercial Heads of Terms ("HOTs") and further announcements will be made as
these progress.

 

·      The acquisition of additional properties recently announced by
FCM adds positively to the business model adopted by FCM.

 

First Class Metals CEO, Marc. J Sale Commented:

"The initiation of these discussions is a significant milestone for FCM. The
Potential Transaction validates the business model we at FCM 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 FCM's 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. 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 'EGS'.

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 FCM, and our focus
remains on maximising value for our shareholders throughout the entire
process.

Natalie Bellis CEO, Seventy Ninth Resources Commented:

"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 FCM, we are continuing
to create multiple value points for the business and deliver on its corporate
vision".

 

( )Seventy Ninth Resources Limited

Seventy Ninth Resources, a division of the Seventy Ninth Group, is an
award-winning asset management company founded by entrepreneur Dave Webster
and his two sons, Jake and Curtis Webster. Seventy Ninth Resources holds a
unique and advantageous position in the natural resource sector, specialising
in the acquisition, management, and development of desirable assets.

Seventy Ninth Resources has been unlocking the potential of the natural
resources sector within the Republic of Guinea since 2011. With 15 employees
in the operational in-country team, the company's extensive presence in the
Republic of Guinea has allowed them to cultivate trusted relationships with
local communities. Through these relationships, they gain unique access to
acquire land in areas with significant potential for gold and diamond mining.
The company's hands-on approach has enabled Seventy Ninth Resources to pair
local knowledge with industry expertise.

The developed board and in-country team for Seventy Ninth Resources includes
world-class experienced geologists, field consultants, and ESG specialists,
working alongside our industry leading partners, SRK Exploration Services and
The MSA Group, in executing specific and focused exploration on assets.

 

 

 

 

https://79thresources.com/ (https://79thresources.com/) There can be no
certainty that the Potential Transaction will be concluded, however, both
parties are committed to proceeding to agree HOTs.

 

Ends

For further information, please contact:

 

 James Knowles, Executive Chairman  JamesK@Firstclassmetalsplc.com (mailto:JamesK@Firstclassmetalsplc.com)  07488 362641
 Marc J Sale, CEO                   MarcS@Firstclassmetalsplc.com (mailto:MarcS@Firstclassmetalsplc.com)    07711 093532

 

Novum Securities Limited

 

(Financial Adviser)

 

 David Coffman/ George Duxberry   www.novumsecurities.com   (0)20 7399 9400

 

 

 

NOTES TO EDITORS

First Class Metals PLC - Background

First Class Metals listed on the LSE in July 2022 and is focused on metals
exploration in Ontario, Canada which has a robust and thriving junior mineral
exploration sector. In particular, the Hemlo 'camp' near Marathon, Ontario is
a proven world class address for gold exploration, featuring the Hemlo gold
deposit operated by Barrick Gold (>23M oz gold produced), with the past
producing Geco and Winston Lake base metal deposits also situated in the
region.

FCM currently holds 100% ownership of seven claim blocks covering over 180km²
along a 150km strike of the Hemlo-Schreiber-Dayohessarah greenstone belt,
exploring for gold, base metals, and rare earth element mineralization. In
addition, FCM is carrying out a joint venture with Palladium One on the West
Pickle Lake Property in the region, a drill-proven ultra-high-grade Ni-Cu
project.

The flagship property North Hemlo had a high-definition low level magnetic
Heli-borne survey flown in April 2022, this was followed with ground
prospecting which ultimately defined the 'Dead Otter Trend' which is a
discontinuous 4.5km gold anomalous trend with a 19.6g/t Au peak grab sample.
This sampling being the highest known assay ever recorded on the North Limb of
Hemlo.

In October 2022 FCM completed the option to purchase the historical high-grade
past-producing Sunbeam gold mine near Atikokan, Ontario, ~15 km southeast of
Agnico Eagle's Hammond Reef gold deposit (3.3 Moz of open pit probable gold
reserves).

FCM acquired the Zigzag Project near Armstrong, Ontario in March 2023. The
property features Li-Ta-bearing pegmatites in the same belt as Green
Technology Metals' Seymour Lake Project, which contains a Mineral Resource
estimate of 9.9 Mt @ 1.04% Li2O. Zigzag was drilled prior to Christmas 2023
and results have now been released.

The significant potential of the properties for precious, base and battery
metals relates to 'nearology', since all properties lie in the same districts
as known deposits (Hemlo, Hammond Reef, Seymour Lake), and either contain
known showings, geochemical or geophysical anomalies, or favourable structures
along strike from known showings (e.g. the Esa project, with an inferred
Hemlo-style shear along strike from known gold occurrences).

 

Forward Looking Statements

Certain statements in this announcement may contain forward-looking statements
which are based on the Company's expectations, intentions and projections
regarding its future performance, anticipated events or trends and other
matters that are not historical facts. Such forward-looking statements can be
identified by the fact that they do not relate only to historical or current
facts. Forward-looking statements sometimes use words such as 'aim',
'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal',
'believe', or other words of similar meaning. These statements are not
guarantees of future performance and are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements.
Given these risks and uncertainties, prospective investors are cautioned not
to place undue reliance on forward-looking statements. Forward-looking
statements speak only as of the date of such statements and, except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

 

 

 

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