Fulcrum Metals plc has signed a definitive option agreement for the sale of its uranium projects in Saskatchewan, Canada.
STRATEGIC
The deal gives Terra Balcanica Resources Corp the option to acquire 100% of the Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects by completing four years’ exploration to the minimum value of C$3,250,000.
Terra paid Fulcrum C$7,500 on signing the exclusive agreement in April followed by further C$17,500 in June.
On signing the definitive agreement, Fulcrum receives 1,997,151 shares in Terra, representing 5.15% of its issued share capital.
Terra’s subsequent payments over four years will total C$300,000 cash and Terra shares equivalent to C$3,060,000.
Fulcrum will use the sale proceeds for working capital.
The company will also retain a 1% net smelter return royalty on all claims with a buydown option of 0.5% NSR for CA$1 million.
Chief executive Ryan Mee said: “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 crystallising value for our shareholders.
“This milestone is a testament to our commitment to both shareholder value and sustainable development.”