9th Mar 2023 14:20
(Alliance News) - First Class Metals PLC on Thursday said it has signed an agreement with Nuinisco Resources Ltd, completing the process of an exclusivity agreement outlined in December.
The metals exploration company seeking large-scale metal discoveries in Canada said the completion of the process gives FCM an option to earn-in up to an 80% interest over Nuinsco's exclusive option held over the Zigzag project in Canada.
FCM said the payments for the exercise option included CAD500,000 cash, or USD362,701, as well as a share component of CAD250,000 in FCM shares, spread across three and a half years.
The company added that it has committed to undertake exploration related expenses worth CAD550,000 over the same period. It noted that the payments and work commitments can be accelerated if desired by FCM, which has an exploration permit already in place.
FCM said 350,000 new shares will be issued to cover the share payments and professional fees.
FCM shares fell 11% to 13.77 pence each in London on Thursday afternoon in London.
Following the completion of the payments, FCM will hold an 80% interest in Zigzag, while Nuinsco will hold the remaining 20%, and the arrangement will be viewed as a joint venture.
Chief Executive Officer Mark Sale said: "FCM is very enthused with the opportunity to have executed the agreement on this very prospective lithium prospect. FCM has now significantly augmented their portfolio of critical minerals within our exploration focus. Given the worldwide shift toward greener and cleaner economies, the acquisition of additional property assets such as Zigzag Lake is a strategic progression for FCM."
By Harvey Dorset, Alliance News reporter
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