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/ or contact:
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Fulcrum Metals PLC |
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Ryan Mee (Chief Executive Officer) |
Via St Brides Partners Limited |
