The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "
4th October 2022
Sunbeam Project Acquisition, Financing & Subscription
HIGHLIGHTS
· The claims together contain the sites of 3 different developed gold mining operations (Sunbeam, Pettigrew &
· Total area of 48km2 comprising of 104 single cell claims in the 'Sunbeam Property' and 9 multi cell claims on the 'English Claims'.
· Recent exploration activities, which includes diamond drilling, indicate several other areas of possible mineralization.
· Property is located 15km southeast of the Agnico Eagle 3.3moz
· Previous estimates are that there could be 50,000-70,000t grading 13.0g/t Au remaining in the old workings.1
· The structure hosting the
· Previous diamond drilling reported: drill hole NS-21-03 - 93.3g/t Au over 0.44m (from 99.5m). No drilling has been recorded below this level.
· Financed by a Convertible Loan Note "CLN" from existing, long-term shareholders
·
The Sunbeam property is situated in the Ramsay-Wright Township in the
The Property hosts several sites of historic mine development and gold mining:
Additionally, the 'Roy' and Pettigrew' showings are on sub-parallel mineralised trends to the Sunbeam mine, contained within an identified >10km of strike.
In parallel to advancing the exploration FCM will investigate the potential of the Sunbeam mine workings.
Figure 1-Sunbeam Mine Cross Section Looking Southeast
Image 1:
In
· NS-21-01 - 3.98g/t Au over 0.6m (from 96.0m) within 3.39m of strongly gold anomalous deformation zone.
· NS-21-02 - 13.8g/t Au over 0.15m (from 80.85m) within 2.83m of strongly gold anomalous deformation zone.
· NS-21-03 - 93.3g/t Au over 0.44m (from 99.5m) within 3.19m of strongly anomalous deformation zone.
· NS-21-05 - 2.94g/t Au over 0.5m (from 118.5m) within 7.50m of strongly anomalous deformation zone.
For more information on this drill programme by Nuinsco see:
Further, three holes were drilled within 100m of the Pettigrew shafts. Hole 57751 intersected 19.4 g/t Au over 0.63m and 15.17 g/t over 1.37m in two zones separated by 15m.
In 2008, the Rubble occurrence was discovered on the property. Assays of up to 1.42 oz per ton gold have been obtained from pyritized and iron carbonate altered rocks.
With regard to the local indigenous First Nation groups, Nuinsco has in place MoU's to facilitate the renewal of the exploration permit covering the entire 48km2. These agreements have the provision to be transferred to a new owner without requirement for revision.
Terms of the deal:
The following are the main commercial points of the present deal.
· FCM to pay
· FCM to undertake exploration related expenses on the property over a period of three years to value of
· On definition of a NI43-101 report indicating 250,000 Oz of resource, FCM will pay Nuinsco a sum of
· Nuinsco to retain a Net Smelter Return Royalty of 1% (one per cent), of which 50% can be bought for
· FCM acknowledges all underlying responsibilities and obligations of Nuinsco, including an annual pre-production royalty and a Net Smelter Return Royalty to the previous owners. FCM will also keep the claims in good standing until all requirements above are fulfilled.
Financing to support the purchase:
In order to finance the purchase and future work commitments, FCM has entered into a Convertible Loan Note ("CLN") with
· A 12-month unsecured convertible loan for
· Convertible in four tranches of
· Fixed premium conversion prices: Tranche 1 at 12p, Tranche 2 at 15p, Tranche 3 at 19p & Tranche 4 at 22p. If all tranches are converted then the average conversion price is 17p, a premium of 70% to the IPO price of 10p in
· The particular investors will be offered a 1:1 warrant at 20p, 22p, 24p and 30p with a two-year term subject to drawdowns.
Alongside the CLN two existing UHNW investors have agreed to enter into a private subscription for a total of 666,667 shares at 0.12p raising a further
The new ordinary shares will rank pari passu with the Company's existing issued ordinary shares. The Company intends to allot and issue these new ordinary shares under its existing authorities on a non-pre-emptive basis.
The Company will be making its application to admit the new ordinary shares to the Official List of the
Conditional on Admission, the Company's issued ordinary share capital will be 66,338,722 ordinary shares, which may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the
The funds will be used exclusively to finance the acquisition and development of the 'Sunbeam Project' from
Further, FCM has entered into an [Option Agreement] with Nuinsco to purchase their Sunbeam property as well as assume the option to purchase contiguous claims under option from
The area under the terms of the agreement are 21km² for the Sunbeam property and 27km² for the English Claims. The total area being optioned being 48km2. Annual expenditure requirements are currently being serviced by the 'bank' of assessments credits from historical work on the Sunbeam claims.
Figure 2-Map of the claim cells that form the entire project
Figure 3-Map of historical sampling/drilling
For further information, please contact:
|
07488 362641 |
|
Marc J Sale, CEO |
07711 093532 |
|
|
07860 598086 |
|
|
|
|
|
|
|
|
|
|
Forward Looking Statements
Certain statements in this announcement may contain forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', or other words of similar meaning. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Links to External Sites
The document may contain links to other websites; these external websites are not under FCM's control. FCM's shall not be held responsible for such websites and do not make any warranties regarding the same. FCM's do not endorse these websites in any manner.
[1] Setterfield, T., 2013. Report on 2011/2012 Outcrop Stripping, Channel Sampling and Drilling by