Final Option Payments Made Re Teck-Hughes
Fulcrum Metals plc has completed its option payments for the Teck-Hughes Gold Tailings Project by making a final CAD$275,000 to the optionors, thereby acquiring a 100% interest in the project located in Kirkland Lake, Ontario. The company will grant the optionors a 3% Net Smelter Return royalty, which Fulcrum can reduce to 1.5% through buy-back provisions. This milestone aligns with Fulcrum's strategy to leverage its cyanide-free technology for recovering metals from historic mine waste, with the Teck-Hughes project estimated to contain 138,460 ounces of gold.
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Fulcrum Metals plc (AIM: FMET), a company pioneering the use of innovative cyanide free technology to recover precious and critical metals from mine waste, is pleased to announce that it has made final payments of CAD$275,000 to the optionors under the Mining Option Agreement relating to the Teck-Hughes Gold Tailings Project, located in Kirkland Lake, Ontario, Canada and in accordance with the terms set out in the Company's announcement released on 30 November 2023.
These final payments complete all cash consideration requirements associated with the option to acquire a 100% interest in the Teck-Hughes Gold Tailings Project.
Fulcrum has now exercised the option to acquire a 100% interest in the Teck Hughes project, and the optionors will be granted a 3% Net Smelter Return (NSR) royalty. As previously announced, Fulcrum retains the right to reduce the NSR royalty to 1.5% through buy-back provisions at any time.
Ryan Mee, Chief Executive Officer of Fulcrum Metals plc, commented: "The completion of the final option payments marks an important milestone in Fulcrum's strategy to unlock value from historic tailings assets using innovative and sustainable processing technologies. We will keep shareholders updated as we advance the Teck-Hughes project through the next stages of evaluation and development towards production."
Teck-Hughes Gold Tailings Project Background
Historic sampling and auger drilling campaigns were conducted at the project, the first in 1980 and the most recent between 2018 and 2022 which produced a non-compliant resource estimate.
From this work 95 auger samples were collected and assayed at Actlab in Timmins. Based on the data from this sampling, along with that of the drill programme from 1980, an estimate of the tonnage was calculated over the north, west and northeast arm of the tailings totaling 6,531,300 tonnes of material at 0.66g/tonne Au for 138,460 ounces contained Au. This estimate remains to be verified by Fulcrum.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.