REG - Fulcrum Metals PLC - Signs Exclusivity Agreement with Extrakt

Fulcrum MetalsAnnouncement

22/05/2025 07:00

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RNS Number : 6872J  Fulcrum Metals PLC  22 May 2025

This announcement contains inside information for the purposes of Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310

 

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

 

 

22 May 2025

 

 

Fulcrum Metals plc

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

 

Signs Exclusivity Agreement with Extrakt for cutting-edge technology for
reprocessing tailings at Fulcrum's Kirkland Lake projects and across two of
Canada's most prolific gold camps

 

Fulcrum Metals plc (AIM: FMET), a technology led company focused on the
recovery of precious metals from mine tailings in Canada, is pleased to
announce that it has signed a Master Licence Agreement (the "MLA") with
Extrakt Process Solutions LLC ("Extrakt") for the exclusive licencing of
Extrakt's technology on legacy gold mine waste (tailings) to develop the
Companies tailings projects in Kirkland Lake and across the mining regions of
Timmins and Kirkland Lake, Ontario, Canada (collectively the "Exclusivity
Agreement").

 

 

Highlights

 

·    Fulcrum signs Exclusive Agreement with Extrakt over legacy gold mine
waste sites in Timmins and Kirkland Lake, two of Canada's most prolific gold
camps

 

·    Extrakt technology to be applied to develop both of Fulcrum's Teck
Hughes and Sylvanite projects in Kirkland Lake towards production

 

·    Fulcrum's Teck Hughes and Sylvanite projects have an estimated in
situ value of over US$700m in gold, gallium, tellurium and silver (based on
today's commodity prices)

 

·    Extrakt's non-cyanide technology testing program at Fulcrum's Teck
Hughes project has delivered non-optimised significantly increased gold
recovery rates of up to 59.4% and substantially reduced leaching times by 60%,
with further optimisation upside potential

 

·    The tailings are above surface and suitable and ready for
reprocessing

 

·    Clear pathway to production at Fulcrum's flagship Teck Hughes
project, which can be scaled through tie in of Sylvanite and other local sites
and across the wider Timmins and Kirkland Lake regions within the exclusivity
zone that contains over 70 mine waste sites

 

·    Exclusivity Agreement runs for an initial period of 4 years, and can
be extended for up to a total of 12 years by mutual agreement

Ryan Mee, Chief Executive Officer of Fulcrum, commented:

"I am delighted we have signed the MLA and to be collaborating with Extrakt in
applying their cutting-edge non-cyanide technology that has delivered
breakthrough results on our projects.

"We look forward to working with Extrakt to develop and unlock the substantial
above surface mineral wealth at our Teck Hughes and Sylvanite projects and
strengthen our exposure to other sites under this milestone exclusivity
arrangement."

William Florman, President of Extrakt, commented:

"We are pleased to have entered into this unique MLA agreement with Fulcrum
following the recently completed foundational step in reporting a favourable
conceptual study at their Teck Hughes project and, before that, significant
testing results at Sylvanite.

"We have seen promising results to date in applying our technology to these
projects and look forward to working with Fulcrum to develop their projects
and further establish our technology's ability in Canada's highly productive
mining districts in Timmins and Kirkland Lake."

Further information

Following the Teck Hughes mining option agreement announced by the Company on
30 November 2023, Fulcrum has been in discussions with Extrakt regarding the
use and licensing of Extrakt's proprietary non-cyanide technology. On 24
January 2024, Fulcrum entered into a phased development plan with Extrakt to
test its technology at its Teck Hughes project. The Company has now signed the
MLA which secures exclusive rights to the use of Extrakt's leach technology on
historic gold mine waste including Fulcrum's Teck Hughes and Sylvanite
projects in Kirkland Lake and across the Timmins and Kirkland Lake regions of
Ontario, Canada. The Timmins and Kirkland Lake gold camps (Figure 1 below) are
two of Canada's most prolific gold-producing regions, covering over 3,700
square kilometres with over 110 million ounces of historical production and
more than 70 documented mine waste sites.

Under the MLA, Fulcrum will pay an annual exclusivity fee in cash to Extract
which is material for Fulcrum with the first exclusivity payment fee being
payable by Fulcrum within 42 days. The MLA has an initial term of 4 years that
can be extended for up to a total of 12 years by mutual agreement. The MLA
provides a framework for licensing agreements for individual sites on a site
by site basis including site specific royalties and collaboration with
Extrakt, its affiliates and alliance partners.

Extrakt's technology enables the recovery of precious metals from refractory
ore without the use of cyanide. High level testing on tailings from Fulcrum's
Teck Hughes and Sylvanite projects has demonstrated very positive
non-optimised results, with gold recovery rates of up to 59.4% and leach times
as low as 3 hours.

A non-optimised conceptual study at Teck Hughes, based on 2,000 tonnes of
tailings processed per day over a 9-year operation, a 59.4% gold recovery
rate, a 6-hour leach time, and a gold price of US$2,899/oz suggests a pre-tax
NPV(7.5) of approximately US$33m (see announcement released by Fulcrum on 12
March 2025). With a process plant design conceptualised and high-level leach
test work complete, further optimisation presents additional upside potential
through enhanced recovery rates, reduced leach times, vacuum filtration of
residue and the recycling of reagents and water - as well as the recovery of
additional minerals held in the tailings. A sensitivity analysis suggests that
a 25% increase in either the recovery rates or the gold price increases the
pre-tax NPV(7.5) by 129% to US$75.5m. The optimisation phase is to target
>70% recovery.

Fulcrum is now focussed on the development of its Teck Hughes and Sylvanite
projects towards optimisation and production using Extrakt technology and
positioned to scale the concept across two of Canada's historically most
productive gold regions. Fulcrum believes this represents a substantial,
long-term opportunity to unlock significant and largely untapped value from
legacy mine waste.

Figure 1: - Timmins and Kirkland Lake exclusivity area, Ontario, Canada

 

 

Technical Glossary

 Au        Gold
 NPV(7.5)  Estimated net present value using a discount rate of 7.5%

 

 

Qualified Person Statement

The technical information in this announcement has been reviewed by Edward
(Ed) Slowey, BSc, PGeo, technical advisor to Fulcrum Metals Plc. Mr Slowey is
a graduate geologist with more than 40 years' relevant experience in mineral
exploration and mining and a founder member of the Institute of Geologists of
Ireland. Mr Slowey has sufficient experience relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which has been undertaken to qualify as a "Qualified Person" in accordance
with the AIM Rules Guidance Note for Mining and Oil & Gas Companies. Mr
Slowey consents to the inclusion in the announcement of the matters based on
their information in the form and context in which it appears.

 

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 / Daniel Dearden-Williams       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

 

About Fulcrum Metals PLC

 

Fulcrum Metals PLC (AIM: FMET) is an AIM listed technology led natural
resources company focused on recovery of precious metals from mine tailings
(previously milled and processed ore) in Canada using environmentally friendly
leaching technology developed by Extrakt Process Solutions LLC and its
associates (together "Extrakt").  The Company's projects are the tailing
sites of the former Teck-Hughes and Sylvanite gold mines, located at the
Kirkland Lake region in Ontario. In addition, the Company has interests in a
portfolio of highly prospective mineral exploration and development projects
in both Ontario and Saskatchewan Canada.

 

Fulcrum have entered into a Master Licence Agreement (MLA) with Extrakt for
the exclusive licence rights using their proven technology on legacy gold mine
waste sites over the mining districts of Timmins and Kirkland Lake which
includes Fulcrum's Teck Hughes and Sylvanite projects. Fulcrum are developing
the Teck Hughes and Sylvanite tailing sites to unlock the significant mineral
wealth and delivering a scalable concept across two of Canada's biggest gold
camps with a history of over 110 million ounces of gold production and more
than 70 mine waste sites.

About Extrakt

Extrakt Process Solutions is a technology company that is focused on
separation technologies for recovering precious mineral recovery, hydrocarbon
separation as well as dewatering of mine waste and other related processes
without the use of cyanide. The company has a global patent portfolio and
continues to develop new processes and technologies. See www.extraktps.com
(https://www.extraktps.com/)

Extrakt Process Solutions, LLC (Extrakt) and Bechtel Energy Technologies &
Solutions, Inc. (BETS) have formed a strategic global technology alliance, to
commercialize Extrakt's novel, leaching technology and solid-liquid separation
technology, known as TNS™. TNS addresses the difficult challenges of mine
tailings, dewatering, and product recovery in a sustainable, effective manner.
Click here
(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fen.prnasia.com%2Freleases%2Fapac%2Fextrakt-and-bechtel-partner-to-commercialize-groundbreaking-solid-liquid-separation-technology-437122.shtml&esheet=54164232&newsitemid=20241210300061&lan=en-US&anchor=here&index=1&md5=b45e3f287d370b8ad4d40844f8ddfffd)
 to read about the strategic alliance press release. See www.bechtel.com
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.bechtel.com%2F&esheet=54164232&newsitemid=20241210300061&lan=en-US&anchor=www.bechtel.com&index=2&md5=0882499bb33a4d564aec4011418bfcf5)

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