Fulcrum Metals Plc (AIM: FMET) has noted an updated mineral resource estimate for the Tully Gold Project in Timmins, Ontario, which has triggered a contractual milestone under its agreement with Loyalist Exploration Ltd.
Loyalist has announced an updated NI 43-101 mineral resource estimate for Tully containing approximately 265,000 ounces of gold. The resource covers only around 15% of the known Mafic Tuff host unit.
The updated estimate exceeds the 200,000-ounce gold resource threshold linked to additional consideration payable to Fulcrum under the purchase agreement signed with Loyalist on 2 October 2025.
Under the terms of that agreement, Fulcrum is due to receive 15,000,000 additional Loyalist shares, or cash in lieu, within 60 days of the filing of the associated technical report confirming a NI 43-101 resource above 200,000 ounces.
Based on Loyalist’s current market price of 3.5 Canadian cents per share, the milestone consideration represents potential additional value of more than CAD$500,000 to Fulcrum, assuming settlement in shares.
Fulcrum said the update represents the first major resource milestone achieved under the transaction structure and demonstrates the value of retaining exposure to the upside of the Tully Gold Project while focusing its own capital on its core mine waste recovery strategy.
Chief executive Ryan Mee said the updated resource was a positive outcome for both Loyalist and Fulcrum.
“The resource has exceeded the 200,000-ounce threshold linked to additional consideration under our transaction with Loyalist, demonstrating the value of the structure we put in place,” he said.
Mee added that the milestone has the potential to deliver more than CAD$500,000 of additional value to Fulcrum without the company needing to commit further capital to advance the project.
Fulcrum retains further exposure to Tully through additional milestone payments linked to future project advancement, as well as a 2% net smelter return royalty.
The company currently holds 78,972,740 shares in Loyalist, representing approximately 18.7% of Loyalist’s issued share capital on a non-diluted basis. If the milestone is settled entirely through the issue of the additional shares, Fulcrum would hold 93,972,740 Loyalist shares.
