First Class Metals PLC on Friday said it has raised £603,000 through a placing, in order to develop its drill programme and repay a loan.

First Class Metals is a Blackburn, England-based exploration company focused on projects in Ontario, Canada

First Class said it has completed a placing of 12.0 million shares priced at 6 pence each.

The placing price represents a 16% discount to shares closing price on Tuesday.

Shares in the company were down 13% to 6.25p each in London on Friday morning.

First Class said the proceeds will be used for the development of a drill programme at the highly prospective Zigzag lithium/Critical Metals Property in Northern Ontario, as well as the full repayment of the Sanderson Capital Partners convertible loan note.

The company intends to repay in full the CLN, which stands at £500,000 drawn.

Chair James Knowles said: ‘We decided as a board it was necessary to take advantage of this opportunity in what is an otherwise difficult and extremely competitive market to raise funds to enable the development of the high impact first drill program on the Zigzag lithium/Critical Metals Property and also repay the outstanding CLN.’

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