LONDON - First Class Metals PLC, a Canada-based precious and base metal explorer, has announced a conditional subscription agreement with The Seventy Ninth Group for a strategic investment totaling approximately £2.18 million. The investment, pending shareholder approval, will grant Seventy Ninth Group a 51.2% ownership in the enlarged share capital of the company upon completion.
The investment aims to accelerate the development of First Class Metals' project portfolio in northern Ontario. Executive Chairman James Knowles (NYSE:KN) remarked on the significance of the investment amidst the challenging UK capital markets and its potential to advance exploration efforts and shareholder value. David Webster, Chairman of The Seventy Ninth Group, expressed enthusiasm for the venture, which aligns with the group's existing exploration projects in Ontario, Canada, and the Republic of Guinea.
The two-stage investment will involve a total of 128,500,000 ordinary shares at 1.7p per share. The first stage, subject to the publication of an FCA approved prospectus and shareholder approval, will consist of 78,552,084 shares. The second stage, requiring additional shareholder authority, will consist of 49,947,916 shares. The Seventy Ninth Group's investment also includes the capitalization of £500,000 previously lent to First Class Metals.
Upon completion of the first stage, Seventy Ninth Group will hold approximately 41.0% of the company's enlarged share capital. This figure accounts for simultaneous issue of shares related to previous agreements and loans. Following the second stage, their ownership will increase to 51.2%. Additionally, the investor will receive warrants exercisable within three and five years.
The completion of the investment is contingent upon several conditions, including regulatory approvals, shareholder approvals of a Rule 9 Waiver, and admission of the shares to the Official List and trading on the London Stock Exchange (LON:LSEG)'s main market.
Concurrent with the investment, board changes will be implemented. David Webster will become the non-executive chairman, James Knowles will transition from Executive Chairman to executive director, and Marc Sale will remain as CEO but step down as a director.
This strategic investment represents Seventy Ninth Group's first external equity investment in the exploration sector and is a move that strengthens its position in the global mining industry. The company will provide further announcements regarding the investment in due course. This report is based on a press release statement.
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