First Class Metals PLC on Tuesday said that it has signed an agreement with OnGold Investment Corp in respect to the Pickle Lake Property, McGill Township in Ontario.

First Class Metals is a metals exploration company seeking large-scale metal discoveries in Canada. The Pickle Lake property consists of 163 single cell mining claims, comprising 3,455 hectares, and is contiguous to both the North Hemlo property and Palladium One’s Tyko project.

According to the deal, First Class Metals has an option to earn-in up to an 80% interest over the property.

The payments for the exercise of this option are 1.0 million shares of First Class Metals shares, to be issued by October 31, and a work commitment of $300,000 over a three-year term. At the end of the earn-in, it is expected a joint venture will be created.

‘I am very pleased with this acquisition which has significantly increased our area of exploration, not only because it is contiguous to North Hemlo, but also for its proximity to West Pickle Lake and also the significant gold assay in the lake sediment sample. Furthermore a share-issue deal for such an asset further confirms the industries’ confidence in our ability to deliver success. FCM will now formulate an exploration programme to follow on from the excellent work by OnGold,’ said Chief Executive Officer Marc Sale.

First Class Metals shares were trading 2.4% lower at 10.00 pence each in London on Tuesday afternoon.

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