First Class Metals (LSE:FCM) has moved to accelerate its earn-in at the Zigzag Lithium Property by settling the final share-based option payment to Nuinsco Resources ahead of schedule. The company has issued 2,277,816 new shares to satisfy a C$85,000 equity obligation that was originally due in June 2026.
Once the remaining cash payments and work commitments are completed, First Class Metals will secure an 80% interest in the Zigzag project, establishing an 80:20 joint venture with Nuinsco. Following the share issue, the company’s total issued share capital will rise to 251,449,552 shares.
Management has positioned the early settlement as a strategic move to reduce execution risk around the earn-in, lock in control of the asset, and take advantage of improving lithium prices and renewed investor interest in the sector. The Zigzag project, located in Ontario’s developing battery minerals corridor, has already delivered high-grade lithium and critical metals drill results and is fully permitted. This places the company in a position to advance further technical work, including a planned beneficiation programme, while strengthening its exposure to North America’s critical minerals supply chain.
From an investment standpoint, the outlook remains challenged by the company’s pre-revenue status, ongoing losses, and sustained cash burn, alongside additional balance sheet pressure following a sharp rise in debt during 2024. Technical indicators continue to point to a downtrend, with the share price trading below key moving averages and a negative MACD signal. Valuation metrics offer limited support given negative earnings and the absence of dividend visibility.
More about First Class Metals Plc
First Class Metals Plc is a UK-listed exploration company with a portfolio of critical and precious metal assets in Ontario, Canada. Its focus spans the Hemlo gold camp and the wider battery metals corridor, with interests in multiple gold projects alongside base and critical metals opportunities. The group also participates in joint ventures such as the ultra-high-grade West Pickle Lake nickel-copper project, with flagship holdings including the North Hemlo and Sunbeam gold projects.
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