RE: A bit of cash13 Jun 2024 14:54
Https://x.com/DrRyanDLong/status/1801245586999353539
First Class Metals PLC LSE:FCM FRA:WN9 has sold the McKellar & Enable properties to the Seventy Ninth Resources (79th Group) for £270,000. Alongside this, the 79th Group has also provided a £230,000 loan while it continues to progress further due diligence over some of First Class Metals' other assets.
The sale of two projects not only brings in some much-needed funds into First Class Metals, it also validates its early-stage exploration incubator strategy. This strategy sees it advances assets up the value curve before monetising them to generate cash flow without dilution to the share structure.
Both the loan and the proceeds from the asset sale will be used for general working capital and to advance First Class Metals' other exploration projects. The secured loan has a 12-month term and has a 15% interest rate with repayment on 25 May 2025, the loan is not convertible.
Thoughts
With funding secured First Class Metals should now be in a position to file its full-year 2023 accounts and recommence trading. With the shares re-trading, we would expect to see the company continue to rapidly advance its exploration projects located in Ontario, Canada.