REG - Fulcrum Metals PLC - Sale of Saskatchewan Uranium Projects

Fulcrum MetalsAnnouncement

03/07/2024 08:00

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RNS Number : 8936U  Fulcrum Metals PLC  03 July 2024

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

 

3 July 2024

 

Fulcrum Metals plc

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

 

Fulcrum Signs Definitive Option Agreement with

Terra Balcanica Resources Corp. for the sale of its Saskatchewan Uranium
Projects

 

Further to the Company's announcements on 17 May 2024 and 3 April 2024,
Fulcrum Metals plc (LON: FMET), a company focused on mineral exploration and
development in Canada, is pleased to announce that it has on 2 July 2024
entered into a definitive option agreement (the "Agreement") with Terra
Balcanica Resources Corp. (CNSX: TERA) ("Terra") for the sale of its uranium
projects (the "Uranium Projects") located in Saskatchewan, Canada.

 

Under the terms of the Agreement, and as announced on 3 April 2024, Terra will
have 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 (equalling $17,500)  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

 

The new shares in Terra that could be issued to Fulcrum under the terms of the
Agreement will be issued at the 10-day volume weighted average price ("VWAP")
prior to the date of issuance. Following entry into the Agreement, Fulcrum
will be issued a total of 1,997,151 shares in Terra (the "Initial Terra
Consideration Shares") representing 5.15 per cent. of the issued share capital
of Terra inclusive of the current Terra shares in issue, issuances of shares
to Fulcrum Metals, Global Energy Metals Corp. ("Global Energy") and the Terra
share placement dated 17 June 2024. The Initial Terra Consideration Shares
will be issued upon approval of The Canadian Securities Exchange, expected to
be three business days after the option close date, and will be subject to a
hold period of four months and one day. Thereafter Fulcrum has agreed to
orderly sales provisions with respect to the Initial Terra Consideration
Shares.

 

Cash generated from the sale of the Uranium Projects will be used by Fulcrum
for its ongoing working capital needs.

 

In addition, and following the exercise of the option, , Fulcrum will retain a
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. Pursuant to the Agreement, as a
finder's fee, Global Energy, will be compensated with CA$150,000, to be
satisfied through the issue of new shares in Terra and a 0.5 per cent. NSR on
all claims.

 

The Uranium Projects

 

The project portfolio totals over 59k hectares targeting major structures
along strike from historic Uranium mines and projects that have attracted
significant investment. Discoveries such as the Arrow discovery (4.3m tonnes
at 0.83% U308) and Triple R discovery (2.7m tonnes at 1.94% U308) have proved
the concept of exploring along structure outside of the Athabasca basin.

Highlights

 

·  Proximal to northern and southeastern edges of the Athabasca Basin
("Basin") in northern Saskatchewan, a premium mining district and leading
global source of high-grade uranium;

 

·   Charlot-Neely is located within the emerging Uranium City district on
the northwestern margin of the Basin;

 

·   Historical work at the projects has demonstrated evidence of uranium
mineralization along favourable structural trends with prospective target
horizons based on electromagnetic conductors; and

 

·   Future exploration by Terra will see the undertaking of a modern
systematic geologic fieldwork and geophysical surveys to determine the
resource potential.

 

 

About Terra

 

Terra Balcanica is a polymetallic and energy metals exploration company listed
on The Canadian Securities Exchange targeting large-scale mineral systems in
the Balkans of southeastern Europe and northern Saskatchewan, Canada. The
company has 90% interest in the Viogor-Zanik Project in eastern Bosnia and
Herzegovina and owns 100% of the Ceovishte mineral exploration licence in
southern Serbia. The Canadian assets comprise a 100% optioned portfolio of
uranium-prospective licences at the outskirts of the world-renowned Athabasca
basin: Charlot-Neely Lake, Fontaine Lake, Snowbird, and South Pendleton.

 

For the year ended 31 January 2023, Terra incurred a loss for the year before
tax of $CAD2,013,644 with net assets of $CAD2,291,508.

 

Ryan Mee, Chief Executive Officer of Fulcrum, commented:

"We are thrilled to announce the signing of a definitive option agreement for
the sale of our uranium assets in Canada. This strategic move not only
provides us with the capital to advance our innovative and environmentally
friendly tailings processing assets, Teck-Hughes and Sylvanite, and focus on
our gold exploration projects but also validates our business model of
identifying low entry-level assets and crystallizing value for our
shareholders. This milestone is a testament to our commitment to both
shareholder value and sustainable development."

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                    Tel: +44 (0) 20 7236 1177

 

 

Notes to Editors

 

FULCRUM METALS - BACKGROUND

 

Fulcrum Metals PLC (LON: FMET) is an AIM quoted exploration and development
company which finances and manages exploration projects focused on Canada,
widely recognised as a top mining jurisdiction. Fulcrum's ambition is to
create an environmentally friendly and sustainable tailings and mine waste
business, driving mining change through combining low discovery risk assets
and jurisdictions with transformative technology capable of near-term cash
flow whilst capitalising on a portfolio of highly prospective exploration
assets.

 

Creating an environmentally friendly and sustainable tailings and mine waste
business

 

Through the adoption of potentially industry disruptive technologies to
deliver near-term cash producing assets. Fulcrum has acquired two gold
tailings projects via option agreements, the Teck-Hughes and Sylvanite gold
tailings projects, in the prolific Kirkland Lake gold camp, Ontario. The
projects are within 3km proximity of each other, with non-compliant estimates
of 138,460 ounces of gold and 67,051 ounces of gold respectively, totalling
205,511 ounces, subject to verification by Fulcrum. In addition, Fulcrum is
working on delivering a licensing framework in Ontario with Technology
partners Extrakt Process Solutions and alliance partners Bechtel Engineering.

 

Growth stage gold projects in Ontario

 

Fulcrum has two drill ready gold projects in Ontario.

 

The Big Bear and Jackfish Schreiber - Hemlo properties have a history of
prospecting and localised extraction since the late 19th century. However,
coherent property-level exploration programmes have been limited or absent,
particularly in recent times. The work completed by Fulcrum at Big Bear has
established a gold corridor of 3km in the Schreiber-Pyramid area with high
grade gold in rock samples of up to 45g/t and historical grades of upto
233g/t, developing multiple drill targets and prospects. This trend is open to
the North, East and South for further discovery. Fulcrum has also completed
high resolution geophysical surveys which now fully cover Big Bear,
identifying a further 5 high priority exploration targets for follow-up
investigation. Big Bear is reported to have the potential to host a large,
structurally controlled, stratabound-style banded iron formation (BIF) gold
prospect similar to the Musselwhite deposit (McNicoll et al., 2016), in
addition to an Archean greenstone, orogenic-style lode gold prospect,
extending past the bounds of known historical mineral occurrences.

 

The Tully property is host to a NI 43-101 compliant resource of 107,000 ounces
of gold with high grades reported in 1997 drilling of up to 2,555.5g/t Au over
0.5 metres within a wider intersection of 322.02g/t over 5.7 metres and 2013
drilling by SGX demonstrating potential extension and depth reporting 9.01g/t
Au over 6.7 metres, and 8.0g/t Au over 6.5 metres. Tully is located 30
kilometres northeast of Timmins within the world class Timmins-Porcupine gold
camp that has produced over 70m Oz of gold to date. Tully is 2 kilometres
southwest of the 1.2Moz Bradshaw Gold Project of Gowest Gold Ltd., currently
in development and within 30km of several multi-million ounce historical
deposits including the producing Hoyle Pond gold deposit. Work undertaken by
Fulcrum has identified several drill target locations with the objective of
extending the deposit along strike and at depth.

 

Establish the prospectivity of its wider non-core Ontario and Saskatchewan
portfolio

 

Fulcrum has highly prospective base metal projects in Ontario and Uranium
projects in Saskatchewan for which cost effective exploration methods will be
utilised to evaluate the projects with a view to securing potential joint
venture and/or acquisition interest.

 

Ontario Base Metals - Fulcrum has developed a strong nickel target at Dog Lake
in the Michipicoten Greenstone Belt with several rock samples in excess of
1,000ppm Ni related to a mafic/ultramafic intrusives, a strong copper
exploration target at Carib Creek in the Winston Lake Greenstone belt with
soil sampling surveys returning several strongly anomalous copper samples up
to 737ppm whilst at Tocheri Lake in the Dayohessarah Greenstone belt a
Versatile Time Domain Electromagnetics (VTEM) airborne geophysical survey
conducted over the southwest corner of the property identified a weak
electromagnetic conductor which may indicate buried mineralisation in addition
to several magnetic targets.

 

Saskatchewan Uranium - Fulcrum has amassed a highly prospective uranium
portfolio of over 59,000 hectares across the Charlot-Neely, Fontaine Lake,
Snowbird and South Pendleton claims. All of the projects are outside the
Athabasca basin along major structures, on trend with historic mines and areas
of significant M&A activity. Recent discoveries such as the Arrow
discovery (4.3m tonnes at 0.83% U308) and Triple R discovery (2.7m tonnes at
1.94% U308) have proved the concept of exploring along major structure outside
the Athabasca Basin. Historic records at Charlot-Neely include rock samples of
up to 6.2% U308, trenching samples of up to 2.1% U308 and significant
electromagnetic conductors covering a 16km zone thought to be prospective for
uranium mineralisation. Work completed by Fulcrum at Charlot-Neely and
Fontaine Lake includes hyperspectral data compilation identifying exploration
targets and field work resulting in discovery of high-grade uranium
mineralisation of up to 0.8% U308 and the discovery of new uranium and
radioactive trends.

 

Conclusion

 

Fulcrum's mining assets are a combination of low discovery risk and high
prospectivity in the exploration phase, so Fulcrum stands to be able to add
significantly to the inherent value through exploration and development
success. Fulcrum will continually review opportunities with potential and with
a view to increasing shareholder value. It is the Board's intention to deliver
medium and long-term growth and to establish the Group as a significant
exploration and development company.

 

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