First Class Metals plc said it was seeking new funding after its largest investor The Seventy Ninth Group Ltd appointed administrators.
DISCUSSIONS
The move follows a current fraud investigation by City of London Police into Seventy Ninth and the subsequent resignation of the chairman of both companies David Webster.
In December 2024, FCM secured a two-tranche £2.18 million investment for Seventy Ninth to hold a 51.2% ownership via a shares’ subscription.
FCM today said that Southport-based Seventy Ninth would not be in a position to complete the second stage of its investment.
“The company [FCM] is in early-stage discussions with interested parties regarding alternative funding options which reflect continued confidence in the quality of the company’s asset portfolio.
“A range of structures is being considered, including non-equity solutions.
“The company remains committed to securing funding aligned with shareholders’ long-term interests and further updates will be provided as appropriate.”
FCM, a spin-out from Power Metal Resources plc which retains a 9.99% share, holds licences for precious and base metals and lithium in Ontario, Canada.