Lancashire-headquartered First Class Metals PLC is seeking “alternative funding options” after the disastrous sequence of events that has led to shareholder The 79th Group appointing administrators, thus being unable to complete the second stage of its initial £548,000 strategic investment.
In a statement to the stock market First Class Metals, which has its head office in the Lancashire village of Ribchester, said they were now “in early-stage discussions” with interested parties regarding “alternative funding options” which the company said “reflect continued confidence in the quality of the company’s asset portfolio.”
The metals exploration company said a range of structures is being considered, including non-equity solutions. “The company remains committed to securing funding aligned with shareholders’ long-term interests and further updates will be provided as appropriate.”
On 30 April TheBusinessDesk.com reported that 79th Group appointed Quantuma as administrators after a major fraud investigation was launched into its activities by the City of London Police.
The 79th Group, which operated from Southport Business Park, offered high yield loan notes to investors which promise a high interest return over a fixed period.
The business, operated in real estate and also claimed to specialise in the acquisition, management and development of lucrative assets.
According to its annual financial report First Class Metals had a Market Capitalisation of £1.713m at 31st December 2024.
In response to a query from TheBusinessDesk.com, James Knowles, CEO of First Class Metals, said: “Neither First Class Metals nor any of its officers have been contacted by the City of London Police in connection with any investigation.
“The equity investment by Seventy Ninth Group in First Class Metals is a matter of public record. FCM is a separate, independent, publicly listed entity. Our position on this matter has been clearly stated in our public disclosures, which remain accurate and up to date.”
In January First Class Metals described a deal to secure a conditional £2.18m investment The 79th Group as “a pivotal moment” which would provide the financial backing to accelerate its ambitious exploration programme in the mineral-rich Hemlo-Schreiber Greenstone Belt in Ontario, Canada.
Throughout the second half of 2024, First Class Metals’ partnership with 79th Group deepened: by December, after further due diligence and discussions, the initial loan facility was increased to £500,000 in October and to £700,000 by year-end.
These funds were described as “instrumental in fully funding our winter 2024/25 exploration programme” which included geophysical surveys and expanded geochemical sampling at mining sites.
In December 2024, a proposed strategic equity investment by 79th Group would have seen it would acquire approximately a 51.2% equity stake in FCM through a staged investment totalling around £2.18 million, which enabled the full repayment of all outstanding debt previously owed by the company.
David, Jake and Curtis Webster of 79th Group
David Webster, one of the founders of 79th Group, was appointed as a non executive director of First Class Metals on the 3rd March 2025 but resigned by the 31st of March.
In its annual financial statement the First Class Metals board said: “Whilst 79th Group denies any wrongdoing, the Board has taken a prudent and measured approach in light of these developments.
“We continue to monitor the situation carefully and will assess any further steps in line with our governance standards and the long-term interests of shareholders. At the time of writing, there are no outstanding loans and the company remains focused on advancing its exploration plans independently, with a clear commitment to maintaining stability and discipline in its operation.”
First Class Metals will be holding its Annual General Meeting at its offices in Ribchester on the 9th of June 2025.
