The Seventy Ninth Group is pleased to announce an increase to its strategic funding loan to First Class Metals PLC (“First Class Metals” or “FCM”), a UK-based metals exploration company focused on discovering economic metal deposits across Northern Ontario, Canada, by an additional £200,000, bringing the total from £500,000 to £700,000.
This follows the previously announced conditional £2.18 million strategic equity funding in First Class Metals by The Seventy Ninth Group. The additional funding has resulted in First Class Metals’ winter exploration programme now being fully funded.
Highlights
- Existing loan to First Class Metals has increased from £500,000 to £700,000
- First Class Metals’ winter exploration programme for North Hemlo & Sunbeam is now fully funded as a result
- Very Low Frequency (VLF) geophysical survey across priority targets at North Hemlo
- Lake sediment sampling programme to identify additional targets at North Hemlo
- Wide scale lake sediment sampling across ‘newly’ staked claims at Sunbeam to identify new targets
- The partnership combines First Class Metals’ extensive expertise and assets with The Seventy Ninth Group’s strategic focus on identifying and supporting undervalued, high-growth opportunities globally
David Webster, Chairman of The Seventy Ninth Group, commented:
“The Seventy Ninth Group is deeply committed to investing heavily into the development of the assets, aligning with its strategic focus on generating significant value across the portfolio for shareholders. This proactive investment approach underscores the Group’s dedication to driving sustainable growth and maximising value through disciplined and strategic asset management.”
James Knowles, Executive Chairman of First Class Metals, commented:
“This additional £200,000 loan from the 79th GRP underscores their continued confidence in our assets and strategy, as well as their commitment to the previously announced £2.18 million conditional equity investment. Their financial support strengthens our ability to execute fully funded Winter Exploration Plans for North Hemlo and Sunbeam, enabling us to maintain momentum across our portfolio.”
“This latest funding highlights the alignment between FCM and the 79th Group as we work collaboratively towards completing the conditional investment process. We are excited about the opportunities this partnership presents to drive forward the development of our northern Ontario projects and deliver significant value for our shareholders.”
Loan Facility Update:
The new loan agreement increases the total facility from £500,000 to £700,000, to be drawn in a single tranche. Key terms of the loan include:
I. Repayment Date: The loan is repayable on the earlier of 25 April 2025 and completion of the first stage of the strategic equity funding or, if such should not occur, the day after the relevant general meeting.
II. Interest Only: Interest will be paid at a 15% annual rate throughout the term.
III. Secured Facility: The loan is secured by a debenture over the assets of First Class Metals PLC.
IV. Equity Conversion: The loan together with accrued but unpaid interest and fees will be capitalised into ordinary shares of the Company at a price of 1.7p per share upon completion of the first stage of the strategic equity funding, as detailed in the announcement dated 18 December 2024.
For more details on the original loan facility, please refer to the announcements dated 13 June 2024 and 8 October 2024.
