First Class Metals plc has boosted its finances with a £520,000 fundraise and proposed cash sale of one of its properties in Northern Ontario, Canada.

PROGRESS
Chairman James Knowles said that the company had to act decisively following the withdrawal of the second stage investment from The Seventy Ninth Group, which is subject of Police fraud investigation.
The fundraise involved the issue of 26 million new ordinary shares of 0.1p each at a 7% discounted price of 2p per share.
A total of 25m shares, placed with institutional and high net worth investors, raised £500,000.
Non-executive director Marc Bamber privately subscribed for one million shares for £20,000, and now holds 1,375,000 ordinary shares.
On admission, the company’s issued share capital will comprise 217,741,361 ordinary shares of 0.1p each, with voting rights. FCM does not hold any shares in treasury.
Proceeds will go towards programmes in early Summer on “refining and defining key targets”, expected to lead to more “invasive” fieldwork and drilling later in the season.
In relation to the potential “material” asset sale, the company has signed a non-binding letter of intent with an unnamed party.
FCM holds 11 projects covering base and precious metals and lithium, including the flagship North Hemlo and Sunbeam properties.
“The prospective purchaser is currently undertaking detailed due diligence with the intention to move to binding documentation as soon as possible,” said the company.
“Whilst there can be no certainty at this stage that a transaction will complete, the board is encouraged by the progress to date.”