Fulcrum Metals plc has secured five long-term surface rights over 270 acres around the Teck Hughes gold mine tailings recovery project in Ontario, Canada.
STRATEGY
The deal gives the company access to land and flexibility for “exploration activities, environmental studies, infrastructure planning and future development work”.
Fulcrum said that the move was a “positive step towards future permitting and development activities”.
The agreements also include a 1km “area of interest” around the boundaries of the Teck Hughes and Sylvanite tailings projects, for surface and mining rights.
Fulcrum will pay vendors, North American Land Holdings, Inc. and White Cliff Holdings LLC, CAD$220,000 cash and grant a 1.5% net smelter royalty (NSR).
The company retains the right to buy down the NSR to 0.75% for a total payment of CAD$750,000, and a further CAD$500,000 reducing the NSR to 0.5%.
The transaction is expected to close within 30 days.
Chief executive officer Ryan Mee added: “Securing these surface rights for the Teck Hughes tailings project is an important strategic step.
“We now have the access and operational certainty needed to advance the project and to further derisk future development.
“Achieving this milestone strengthens the long-term value of Teck Hughes and positions us for the next phase of development and project evaluation.”
Fulcrum continues technical work programmes and engaging with stakeholders.
TVRs
The company will issue 85,714 new ordinary shares of one pence in the company, totalling £7,500, to a service provider in lieu of fees.
Following admission, Fulcrum’s total issued share capital will comprise 153,158,025 ordinary shares, with voting rights.
The company does not hold any ordinary shares in treasury.