First Tin PLC has announced that Metals X Limited, Australia's largest tin producer, has acquired a strategic stake in the company by purchasing 60 million existing ordinary shares at 4 pence per share. This acquisition represents approximately 23% of the current issued ordinary share capital of First Tin. Additionally, Metals X has agreed to subscribe for 11,500,000 Placing Shares in a fundraising, subject to shareholder approval, which will further increase its holding to approximately 23% of the enlarged issued share capital of the Company.
Metals X's investment is seen as a significant development for First Tin, as it brings decades of expertise in tin mining and processing, along with a strong balance sheet. This is expected to aid First Tin in advancing its high margin, low capex tin projects in Australia and Germany. Metals X Chairman Peter Gunzburg expressed his enthusiasm for the strategic investment, highlighting the potential benefits for all stakeholders.
First Tin's CEO, Bill Scotting, welcomed Metals X as a new shareholder and expressed optimism about the collaboration. He emphasized the importance of the partnership in optimizing and accelerating the delivery of their growth projects, which are crucial in supplying essential tin units to support the global energy transition and digital transformation.
As part of the agreement, Metals X will nominate two directors to the First Tin board. Brett Smith, Executive Director of Metals X, and Peter Gunzburg, Chairman of Metals X, will join the board, while Clara's board representative, Mr. Nicholas Mather, will step down as a Non-Executive Director. First Tin expressed gratitude to Mr. Mather for his contribution to the board since the IPO in 2022.
First Tin PLC is an ethical, reliable, and sustainable tin production company focused on becoming a tin supplier in conflict-free, low political risk jurisdictions. The company aims to rapidly develop high value, low capex tin assets in Germany and Australia, which have been significantly de-risked. With rising demand and shortages, the tin market is expected to experience sustained deficit markets for the foreseeable future, making First Tin's projects strategically important.