First Class Metals plc has closed the site programme and land use agreement, with an indicative value of US$10.64 million (£8m), for its Kerrs gold project located in northeast Ontario, Canada.
EXPLORATION
The transaction with nGRND Inc results in the latter holding the conditional right to acquire all 386,465 ounces of gold.
nGRND will first buy up to 77,293 eligible inventory ounces of gold with a minimum purchase of 60% of the eligible ounces within one year.
First Class retains 100% ownership of the land and the underlying mineral asset.
The company said it would also receive an additional bonus for any “carbon, biodiversity and ESG attributes” generated by nGRND and any specialist experts engaged.
First Class will grant 10m share warrants priced at 5.5p exercisable and 10m share warrants at 10p to nGRND.
Chief executive officer Marc J Sale added: “This is a pivotal transaction for FCM.
“The proceeds from this arrangement will materially strengthen the company’s ability to advance, even accelerate, exploration on its district scale Sunbeam property as well as maintain exploration on other key properties.
“The current resource review of Kerrs using the higher gold price has the potential to increase the inferred ounces and give guidelines as to how the confidence can be upgraded.”