First Class Metals PLC (“First Class Metals”, “FCM” or the “Company”), the UK-listed exploration company advancing high-grade, district-scale gold opportunities in Ontario,  Canada, is pleased to announce that it has entered into an interest-free Convertible Loan Note agreement for £500,000 (“CLN” or “Convertible Loan Note”) with an international institutional investor (the “Investor”).

Funding Overview

Under the agreed terms, the Investor will provide up to £500,000 by way of an interest-free Convertible Loan Note, with a twelve-month maturity. The conversion price will be 80% of the lowest five-day VWAP prior to any conversion notice.

Conversion of the Convertible Loan Note is mandatory at maturity, though the Company retains the option to redeem any outstanding balance of the CLN at 125% of nominal value. A 2% commitment fee will be offset against the drawdown at the time of funding.

As part of the funding arrangement, the Investor will also have the option to purchase £250,000 in warrants in First Class Metals PLC (“Warrants”). The Warrants will be exercisable at a price equal to 120% of the Company’s closing market price on 11 November 2025, being 3.18 pence per share based on a closing price of 2.65 pence. A total of 7,861,635 Warrants will be issued. The Warrants will remain valid for a period of three years from the date of issuance.

This financing will enable FCM to commence its planned drilling campaign on the Dead Otter trend at the North Hemlo Property, targeting the 19 g/t gold (“Au”) anomaly and other identified prospective zones along the trend. The drilling programme aims to capitalise on the remaining seasonal window before ground conditions deteriorate with the onset of winter.

Corporate Update

The Company is pleased to report that negotiations regarding the potential asset sale are advancing, with due diligence complete and commercial terms agreed. The funding secured through this Convertible Loan Note is intended to bridge the timing gap between ongoing operations and the anticipated closing of this transaction.

Next Steps

Funds from the Convertible Loan Note are expected to be received shortly, allowing mobilisation of drill crew. The Company will update shareholders on operational progress and on developments regarding the asset sale in due course.

James Knowles, Executive Chairman commented:

“This agreement with the Investor provides FCM with the immediate flexibility to advance exploration at North Hemlo, where the planned drilling campaign represents a pivotal and exciting phase for the Company. The support of an institutional investor at this critical juncture underscores confidence in our portfolio and in our strategy to unlock shareholder value through both the continued development and monetisation of our assets.”

 

We have  prepared a short video summary of this announcement that you can view directly here: https://firstclassmetalsplc.com/link/P4xZQP

 

 

 

For further information, please contact:

James Knowles, Executive Chair
Email: JamesK@Firstclassmetalsplc.com
Tel: 07488 362641

Marc J Sale, CEO, Executive Director
Email: MarcS@Firstclassmetalsplc.com
Tel: 07711 093532

AlbR Capital Limited (Financial Adviser)
David Coffman
Website: www.albrcapital.com
Tel: (0)20 7399 9400

Axis Capital Markets (Broker)
Lewis Jones
Website: Axcap247.com
Tel: (0)203 026 0449