RCS - Panther Metals PLC - Fulcrum Metals - Uranium Asset Disposal

Panther MetalsAnnouncement

03/04/2024 07:15

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RNS Number : 0642J  Panther Metals PLC  03 April 2024

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 FOR IMMEDIATE RELEASE

PANTHER METALS PLC

("Panther" or the "Company")

(Incorporated in the Isle of Man with company number 009753V)

3 April 2024

Fulcrum Metals Announce Potential Disposal of Uranium Projects

Panther Metals PLC (LSE:PALM) the company focused on mineral exploration in
Canada, is pleased to note the Fulcrum Metals PLC ("Fulcrum", LON: FMET)
announcement that it has entered into a letter of intent with Terra Balcanica
Resources Corp for the sale of Fulcrum's Saskatchewan uranium projects.

Panther currently holds a total of 9,971,839 ordinary shares in Fulcrum
representing a 19.99% interest in the entire issued share capital of Fulcrum,
plus 714,286 warrants exercisable at 17.5p with a two-year life from 14
February 2023 and a further 476,190 warrants exercisable at 26.25p with a
three-year life. Panther also retains a 2% net smelter return royalty over the
Big Bear Project.

CEO, Darren Hazelwood, commented:

"I congratulate Ryan and his team in getting this deal to the letter of intent
stage. The indication within Fulcrum's announcement is an expected completion
by the 1(st) May providing some insight into a positive and progressive
working relationship with the purchaser and I look forward to its completion.

Fulcrum continue to advance and grow as a company and the proposed divestment
of its uranium portfolio on terms that allow the business to benefit from
upside is encouraging. This streamlining of its assets provides the business
with additional capacity at an exciting time in its development as the team
focus on delivering via its tailings business."

Fulcrum News Summary

Fulcrum Metals have entered into a non-binding Letter of Intent ("LOI") with
Terra Balcanica Resources Corp. (CNSX: TERA) ("Terra" or the "Optionee"), a
mining explorer with projects in Bosnia and Herzegovina and Serbia.  Pursuant
to the LOI, Terra, through an Option Agreement (the "Option Agreement"), will
be granted the option to acquire a 100% interest in Fulcrum's uranium projects
(the "Uranium Projects") located in Saskatchewan, Canada.

 

Terra will have the option to acquire the 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 to Fulcrum for exclusivity on execution of signing the letter of  CA$7,500
 intent
 Payment to Fulcrum on closing of Option Agreement                         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$500,000
 Year 3                                                                    CA$75,000                                      CA$650,000
 Year 4                                                                    CA$75,000                                      CA$1,250,000
 Total                                                                     CA$300,000                                     CA$3,000,000                         CA$3,250,000

 

The new shares in Terra that could be issued to Fulcrum under the terms of the
Option Agreement will be issued at the 10-day Volume Weighted Average Price
("VWAP") prior to the date of issuance. The shares issued to Fulcrum on
closing of the Option Agreement will be capped at CA$0.065 per share,
pre-consolidation by Terra.

 

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 percent NSR for CA$1 million. As part of the Option Agreement,
and for terminating the existing agreement (the "Prior Agreement") between
Fulcrum and Global Energy Metals Corp. ("Global Energy"), (details of which
were announced by Fulcrum on 30 January 2024), Global Energy will be
compensated with CA$150,000 to be satisfied through the issue of  new shares
in Terra on the closing of the Option Agreement and a 0.5 per cent. NSR on all
claims.

 

Completion of the transaction outlined in the LOI is conditional on the
completion of due diligence, Board approval by Fulcrum and Terra, receipt of
all required third party consents and execution of the Definitive Option
Agreement. The Company anticipates the completion of the definitive agreement
to take place by 1(st) May 2024.

 

The LOI is non-binding and sets out the intention of both parties to enter
into a definitive agreement on the terms set out in the LOI, the key terms of
which are summarised in this announcement. There can be no guarantee that a
definitive agreement in relation to the Option Agreement will be entered into
nor that the terms will be the same as set out in the LOI and this
announcement.

 

Addition terms of the LOI

 

 Orderly Sales Agreement  Fulcrum will agree to orderly sales provisions with respect to its equity
                          interest in Terra
 Dunn Option*             The Option Agreement will include a covenant by Fulcrum to maintain the Dunn
                          Option in good standing, and to exercise the Dunn Option and acquire a 100%
                          interest in the properties included in the Uranium Projects that are subject
                          to the Dunn Option.
 Governing Law            The Option Agreement shall be governed by and construed in accordance with the
                          laws of the Province of British Columbia, and the federal laws of Canada.

* Certain claims comprising properties that are owned by Gary Clayton Dunn and
Jonathan Stewart Dunn who granted an option to acquire a 100% interest in them
to Fulcrum pursuant to a mining option agreement

 

 

Ryan Mee, Chief Executive Office of Fulcrum, commented:

 

"We have experienced significant interest from third parties over our uranium
assets in Saskatchewan and are pleased to be able to announce the signing of
this non-binding LOI with such a strong operational partner in Terra to apply
their technical expertise to advance these Uranium projects. The completion of
the option agreement will facilitate four years of exploration on these highly
prospective licence areas, at a time when uranium prices, driven by the energy
transition, continue to rise.

 

The terms outlined in the LOI, and consequent Option Agreement will enable
Fulcrum shareholders to benefit from the potential upside of these projects,
via the net smelter royalty and Terra shares, whilst providing Fulcrum with an
injection of cash which we can use to advance other projects."

 

"At Fulcrum we are fortunate to have an outstanding team and this agreement
not only endorses the strategy deployed by Fulcrum but is an important step
for Fulcrum to execute the next stage of the strategy with a clear focus on
gold, and in particular more so on gold tailings and mine waste in Ontario.

 

The gold tailings and mine waste in Ontario combines established mining
jurisdiction with low discovery risk, and potential for earlier cash-flow
opportunities. Teck-Hughes is Fulcrum's first gold tailings project, located
in Kirkland Lake, Ontario for which sampling was complete in January and
testing is underway at Extrakt Process Solutions testing facility. In addition
to this the company is working on a framework with Extrakt Process Solutions
and their alliance partners including Bechtel Corporation on licensing
opportunities in Ontario.

 

Fulcrum has significant opportunities opening up, and I look forward to
updating the market at the appropriate time as we progress these."

 

 

Further information and the release in full please visit:
www.fulcrummetals.co.uk

 

For further information please contact:

 

 

Panther Metals PLC:

Darren Hazelwood, Chief Executive Officer:            +44(0) 1462
429 743

 
+44(0) 7971 957 685

Brokers:

Tavira Financial Limited

Christopher James Kipling
         +44(0) 203 833 3743

SI Capital Limited

Nick Emerson
                         +44(0) 1438 416 500

Axis Capital Markets Limited

Ben Tadd

Lewis
Jones
+44 (0)20 3026 0449

 

Notes to Editors

Panther Metals PLC is an exploration company listed on the main market of the
London Stock Exchange. Panther is focussed on the discovery of commercially
viable mineral deposits. The Company's operational focus is on established
mining jurisdictions with the capacity for project scalability. Drill targets
are assessed rapidly utilising a combination of advanced technologies and
extensive geological data to decipher potential commercial viability and act
accordingly. Panther's current geological portfolio comprises of three highly
prospective properties in Ontario, Canada while the developing investment wing
focuses on the targeting of nickel and gold in Australia.

Obonga Project

Panther Metals acquired the Obonga Greenstone Belt in July 2021 and have
already identified five prospective primary targets: Wishbone, Awkward,
Survey, Ottertooth and Silver Rim. A successful Phase 1 drilling campaign at
Wishbone in Autumn 2021 revealed the presence of significant VMS-style
mineralised systems on the property - the first such discovery across the
entire greenstone belt. Intercepts include 27.3m of massive sulphide in hole
one, and 51m of sulphide-dominated mineralisation in hole two. Both drill
holes contained multiple lenses. Anomalous high-grade copper in lake sediment
close to the target area has also been identified, increasing confidence in
the prospectivity of the location.

Awkward is a highly anomalous magnetic target, interpreted to be a layered
mafic intrusion and magmatic conduit based on mapped geology and airborne
geophysics. Historic sampling in the area returned anomalous platinum and
palladium (Pt, Pd) values, while historic drilling on the periphery of the
target intersected non-assayed massive sulphide and copper (assumed to be
chalcopyrite), non-assayed disseminated pyrite and chalcopyrite in coarse
gabbro, and non-assayed 'marble cake' gabbro (matching the description of the
Lac des Iles Mine varitexture gabbro ore zone).

Two additional named targets, Survey and Ottertooth, both displays further
coincident magnetic and electromagnetic anomalies and are adjacent to the
contact between intrusive and extrusive mafic rocks. Historic drilling at
Survey intersected several meters of massive sulphides in multiple
intersections (main parts of the anomaly remain untested) while Ottertooth
remains untested in its entirety.

Dotted Lake Project

Panther Metals acquired the Dotted Lake Project in July 2020, it is situated
approximately 16km from Barrick Gold's renowned Hemlo Gold Mine. An extensive
soil programme conducted in 2021 identified numerous gold and base metal
targets, all within the same geological footprint. Following the installation
of a new trail providing direct access to the target location, an initial
drilling programme in Autumn 2021 confirmed the presence of gold
mineralisation within this system with anomalous gold continuing along strike
and present within the surrounding area.

Manitou Lakes Project

The Manitou Lakes gold project is located approximately 300km's east of
Thunder Bay, Ontario and covers a total area of around 98sq km's.

There are over 200 known gold occurrences on the Manitou Lakes project area
with the wider Eagle/Manitou Lakes greenstone belt hosting numerous historic
gold producers and is prospective for Archean age orogenic gold and associated
base metal deposits.

Exploration work conducted by Shear Gold on the Project to date has identified
numerous gold bearing structures and favourable geological host rocks through
early-stage mapping and surface sampling. The work has focussed on two target
areas, being the West Limb Gold Property and the Glass Reef Gold Property,
both of which host historic gold mines which have never been systematically
explored using modern techniques or drill tested

Fulcrum Metals Plc

Fulcrum Metals PLC (LON: FMET) is an AIM listed exploration company which
finances and manages exploration projects focused on Canada, widely recognised
as a top mining jurisdiction.

 

FMET currently holds a beneficial 100% interest in highly prospective gold and
base metals projects in Ontario and Uranium projects in Saskatchewan.

 

Fulcrum's strategy is to focus on discovery and commercialisation of its
Projects through targeted exploration programmes. The primary focus is to make
an economic discovery on the flagship Schreiber-Hemlo Properties and
establishing the prospectivity of its wider Ontario and Saskatchewan portfolio
with a view to securing potential joint venture and/or acquisition interest.

 

Panther Metals Plc own 20% of the issued share capital of Fulcrum Metals Plc
and a 2% NSR on the Big Bear project.

Panther Metals Australia

Following the listing of Panther Metals' Australian assets on the Australian
Securities Exchange ("ASX") in December 2021. The ASX listing has provided the
Australian projects with the necessary capital to advance drill-ready targets
focused on nickel and gold (within the Tier 1 Mining Districts of Laverton WA
and in the NT). Through this spin-out Panther holds an attractive investment
prospect, without any disruption to the Company's capital structure and
without any financial obligations.

Conclusion

Panther Metals understand that the commercial realities of building an
exploration company requires expertise in geology, finance, and the markets
within which they operate. The Company's extensive network of industry leaders
allows it to meet these objectives. Ultimately however, drilling success is
the only route to discovery: the fundamental objective of any exploration
company. Once Panther's world-class geological team identify the anomalies,
they work hard to get drilling. The drill hole is the only place where
substantial and sustained capital growth originates and it's with that
operational focus Panther Metals will continue to advance.

 

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