Fulcrum Metals plc has closed the sale of the Tully gold project in the Timmins mining district of Ontario, Canada to Loyalist Exploration Ltd.
CONFIDENT
Under the terms, Fulcrum has received 78.7 million common shares in Loyalist, CAD$500,000 (£266,000) cash and a 2% net smelter return royalty on the Ontario project.
The company also expects to receive further cash and around an additional 15.27m Loyalist shares, subject to certain milestones achieved, including the decision to mine the project.
Fulcrum will use the proceeds to progress its Teck Hughes and Sylvanite gold tailings projects in Kirkland Lake.
“Tully is a highly prospective gold project, and we are confident that Loyalist’s strong technical team will take Tully to a higher level,” said chief executive Ryan Mee.
“This belief is reflected in our significant equity position in Loyalist and in our decision to retain exposure to Tully through a royalty.”