First Class Metals PLC on Tuesday said a process which may see the company dispose of assets has begun.

The Canadian-focused metals exploration company follows a business model focused on acquiring, adding value to, and monetising assets.

Therefore, the company has entered into discussions with the UK-based asset management firm Seventy Ninth Resources Ltd to potentially sell off a selection of both core and non-core assets.

The two companies have also affirmed their commitment to work more closely together and FCM is actively exploring mutually beneficial synergies to further expand their portfolio of natural resources assets.

Chief Executive Officer Mark Sale said: ‘The interest shown by Seventy Ninth Resources confirms FCM’s belief that the current market capitalisation of the company does not fully reflect the value of the properties in our portfolio and their potential to deliver.’

Negotiations of the terms are ongoing and further announcements will be made as these progress.

First Class shares were up 6.6% to 3.15 pence each in London on Tuesday afternoon.

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