REG - Fulcrum Metals PLC - Completion of option for sale of Uranium Projects

Fulcrum MetalsAnnouncement

30/07/2024 11:45

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RNS Number : 4191Y  Fulcrum Metals PLC  30 July 2024

Fulcrum Metals plc / EPIC: FMET / Market: AIM / Sector: Mining

30 July 2024

 

Fulcrum Metals plc

("Fulcrum" or the "Company" or the "Group")

 

Completion of option agreement for sale of Saskatchewan Uranium Projects

 

Further to the Company's announcement of 3 July 2024, Fulcrum Metals plc (LON:
FMET), a company focused on mineral exploration and development in Canada, is
pleased to announce the closing of the definitive option agreement (the
"Agreement") dated 2 July 2024 for the sale of the Company's uranium projects
located in Saskatchewan, Canada (the "Uranium Projects") to Terra Balcanica
Resources Corp. (CNSX: TERA) ("Terra").

 

Under the terms of the Agreement, and as announced on 3 April 2024, Terra has
the option to acquire 100% of Fulcrum's Uranium Projects, consisting of the
Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects by
completing four years of exploration programmes and making a series of cash
and equity payments as outlined below:

 

 

                                                 Cash to Fulcrum                                Value of Shares in Terra to Fulcrum  Exploration Expenditures required by Terra

 Payment received by Fulcrum on 4 April 2024     CA$7,500
 Payment received by Fulcrum on 18 June 2024     CA$25,000 less CA$7,500 exclusivity agreement  CA$250,000

                                                                                                                                     Complete minimum work expenditures totalling CA$3,250,000

                                                                                                                                     Prior to fourth anniversary of the Option Agreement
 Year 1                                          CA$50,000                                      CA$350,000
 Year 2                                          CA$75,000                                      CA$560,000
 Year 3                                          CA$75,000                                      CA$650,000
 Year 4                                          CA$75,000                                      CA$1,250,000
 Total                                           CA$300,000                                     CA$3,060,000                         CA$3,250,000

 

On closing of the Agreement, Fulcrum has been issued a total of 1,997,151
common shares in Terra (the "Initial Terra Consideration Shares") at a deemed
issue price of $0.125 per Terra share representing 4.49% per cent. of the
issued share capital of Terra. The Initial Terra Consideration Shares will be
subject to a hold period of four months from the date of issuance in
accordance with applicable securities laws in Canada. Thereafter Fulcrum has
agreed to orderly sales provisions with respect to the Initial Terra
Consideration Shares.

 

In addition, and following the exercise of the option, Fulcrum will retain 1
per cent. net smelter return ("NSR") royalty on all claims with a buydown
option of 0.5 per cent. NSR for CA$1 million.

 

Ryan Mee, Chief Executive Officer of Fulcrum, commented:

 

"I am pleased to be able to announce the closing of the option agreement for
the sale of Fulcrum's uranium assets to Terra Balcanica Resources, which
validates the ability of Fulcrum to be able to realise value from its highly
prospective exploration portfolio for shareholders.

 

Fulcrum maintain exposure to the uranium assets through the share equity
payments totalling CDN$3m and the 1 per cent net smelter royalty, whilst the
obligated exploration expenditures of CDN$3.25m will leverage against the
value of that share equity with no dilution to Fulcrum shareholders.

 

It is an exciting time at Fulcrum as we concentrate our energy on our
innovative and low-environmental impact tailings processing assets,
Teck-Hughes and Sylvanite, as well as our drill ready gold projects in
Ontario. We believe that focusing on these assets, whilst maintaining exposure
to the uranium assets will be instrumental in our ability to deliver value for
our shareholders."

 

For further information please visit https://fulcrummetals.com/
(https://fulcrummetals.com/) or contact:

 Fulcrum Metals PLC
 Ryan Mee (Chief Executive Officer)           Via St Brides Partners Limited

 Allenby Capital Limited (Nominated adviser)
 Nick Athanas / George Payne                  Tel: +44 (0) 203 328 5656

 Clear Capital Markets Limited (Broker)
 Bob Roberts                                  Tel: +44 (0) 203 869 6081

 St Brides Partners Ltd (Financial PR)
 Ana Ribeiro / Paul Dulieu / Will Turner      Tel: +44 (0) 20 7236 1177

 

 

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