4th Oct 2022 17:30
(Alliance News) - First Class Metals PLC on Tuesday said it is considering a potential acquisition of gold assets in Ontario.
First Class said it will potentially acquire the Sunbeam project in Ontario. It hosts several sites of historic mine development and gold mining, including the Sunbeam mine, the Roy mine, and the Pettigrew mine.
First Class Metals said the deal with Nuinsco Resources Ltd would comprise of payments worth CAD700,000, around GBP451,707, in three tranches over a period of eight months from the date of signing.
The Lancashire, England-based metals exploration company would then undertake exploration-related expenses on the property over three years to a value of CAD750,000.
First Class Metals said that the purchase of Sunbeam was an opportunity to develop a historical high grade gold mine.
"We believe with a structured well-planned period of exploration once all historic data has been assimilated this project could identify the untapped potential that exists across the entire claim area," commented Chief Executive Officer Marc Sale.
The company said previous estimates showed there could be 13.0 grams of gold per tonne remaining in the old workings.
The acquisition would be financed by a 12-month unsecured convertible loan note of GBP1.0 million, convertible in four tranches of GBP250,000, from long-term shareholders Sanderson Capital Partners Ltd and Azfal Valli.
Two existing ultra high-net worth investors have also agreed to enter into a private subscription for a total of 666,667 shares at 0.12 pence each, raising a further GBP80,000.
First Class Metals shares closed 7.0% higher at 13.00p each in London on Tuesday.
By Holly Beveridge; [email protected]
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