Letter of Intent and Option Agreement
- The Option Agreement grants Terra the option to acquire 100% of FMET's uranium projects located in Saskatchewan, Canada, including:
- Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects
- By completing 4 years of exploration and cash and equity payments
Market Intelligence
- Terra is a mining explorer with projects in Bosnia, Herzegovina and Serbia
- Total cash and equity payments:
- Cash to FMET = CA$0.3m
- Terra equity to FMET = US$3.0
- FMET retains a 1% net smelter royalty for CA$1.0m
- FMET will pay break fees to Global Energy Metals Corp. of CA$0.15m
"We have experienced significant interest from third parties over our uranium assets in Saskatchewan and are pleased to be able to announce the signing of this non-binding LOI with such a strong operational partner in Terra to apply their technical expertise to advance these Uranium projects. The completion of the option agreement will facilitate four years of exploration on these highly prospective licence areas, at a time when uranium prices, driven by the energy transition, continue to rise.
The terms outlined in the LOI, and consequent Option Agreement will enable Fulcrum shareholders to benefit from the potential upside of these projects, via the net smelter royalty and Terra shares, whilst providing Fulcrum with an injection of cash which we can use to advance other projects."
"At Fulcrum we are fortunate to have an outstanding team and this agreement not only endorses the strategy deployed by Fulcrum but is an important step for Fulcrum to execute the next stage of the strategy with a clear focus on gold, and in particular more so on gold tailings and mine waste in Ontario.
The gold tailings and mine waste in Ontario combines established mining jurisdiction with low discovery risk, and potential for earlier cash-flow opportunities. Teck-Hughes is Fulcrum's first gold tailings project, located in Kirkland Lake, Ontario for which sampling was complete in January and testing is underway at Extrakt Process Solutions testing facility. In addition to this the company is working on a framework with Extrakt Process Solutions and their alliance partners including Bechtel Corporation on licensing opportunities in Ontario.
Fulcrum has significant opportunities opening up, and I look forward to updating the market at the appropriate time as we progress these".
Ryan Mee, CEO of Fulcrum Metals.