First Class Metals plc has agreed a convertible loan note for £500,000 with an “international institutional investor” to fund drilling the Dead Otter gold trend on North Hemlo in Ontario, Canada.
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The interest-free CLN matures in 12 months and has a conversion price of 80% of the lowest five-day VWAP prior to any conversion notice.
The investor also has the option to buy £250,000 in First Class warrants, exercisable at 120% of the company’s closing market price of 2.65 pence on 11 November 2025, which is 3.18p per share.
On exercise, First Class will issue 7,861,635 warrants which remain valid for three years from the date of issue.
The company said that the financing bridged the time between the planned drilling programme and completion of a potential asset sale.
Operations, due to start before Winter, will target a 19 g/t gold anomaly and other identified prospective zones on the Dead Otter trend.
First Class added that negotiations on the potential asset sale were “advancing, with due diligence complete and commercial terms agreed.”