Sale of Uranium Projects
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Panther Metals PLC (LSE:PALM) the company focused on mineral exploration in Canada, is pleased to note the Fulcrum Metals PLC ("Fulcrum", LON: FMET) announcement that it has successfully disposed of the company's uranium exploration assets to Terra Balcanica Corp. (CNSX: TERA).
Panther currently holds a total of 7,625,122 ordinary shares in Fulcrum representing a 15.26% interest in the entire issued share capital of Fulcrum, plus 714,286 warrants exercisable at 17.5p with a two-year life from 14 February 2023 and a further 476,190 warrants exercisable at 26.25p with a three-year life. Panther also retains a 2% net smelter return ("NSR") royalty over the Big Bear Project.
Further to the Company's announcements on 17 May 2024 and 3 April 2024, Fulcrum Metals plc (LON: FMET), a company focused on mineral exploration and development in Canada, is pleased to announce that it has on 2 July 2024 entered into a definitive option agreement (the "Agreement") with Terra Balcanica Resources Corp. (CNSX: TERA) ("Terra") for the sale of its uranium projects (the "Uranium Projects") located in Saskatchewan, Canada.
Under the terms of the Agreement, and as announced on 3 April 2024, Terra will have the option to acquire 100% of Fulcrum's Uranium Projects, consisting of the Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects by completing four years of exploration programmes and making a series of cash and equity payments as outlined below:
| Cash to Fulcrum | Value of Shares in Terra to Fulcrum | Exploration Expenditures required by Terra | |
| Payment received by Fulcrum on 4 April 2024 | CA$7,500 | - | - |
| Payment received by Fulcrum on 18 June 2024 | CA$25,000 less CA$7,500 exclusivity agreement (equalling $17,500) | CA$250,000 | Complete minimum work expenditures totalling CA$3,250,000 Prior to fourth anniversary of the Option Agreement |
| Year 1 | CA$50,000 | CA$350,000 | |
| Year 2 | CA$75,000 | CA$560,000 | |
| Year 3 | CA$75,000 | CA$650,000 | |
| Year 4 | CA$75,000 | CA$1,250,000 | |
| Total | CA$300,000 | CA$3,060,000 | CA$3,250,000 |
The new shares in Terra that could be issued to Fulcrum under the terms of the Agreement will be issued at the 10-day volume weighted average price ("VWAP") prior to the date of issuance. Following entry into the Agreement, Fulcrum will be issued a total of 1,997,151 shares in Terra (the "Initial Terra Consideration Shares") representing 5.15 per cent. of the issued share capital of Terra inclusive of the current Terra shares in issue, issuances of shares to Fulcrum Metals, Global Energy Metals Corp. ("Global Energy") and the Terra share placement dated 17 June 2024. The Initial Terra Consideration Shares will be issued upon approval of The Canadian Securities Exchange, expected to be three business days after the option close date, and will be subject to a hold period of four months and one day. Thereafter Fulcrum has agreed to orderly sales provisions with respect to the Initial Terra Consideration Shares.
Cash generated from the sale of the Uranium Projects will be used by Fulcrum for its ongoing working capital needs.
In addition, and following the exercise of the option, , Fulcrum will retain a 1 per cent. net smelter return ("NSR") royalty on all claims with a buydown option of 0.5 per cent. NSR for CA$1 million. Pursuant to the Agreement, as a finder's fee, Global Energy, will be compensated with CA$150,000, to be satisfied through the issue of new shares in Terra and a 0.5 per cent. NSR on all claims.
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Conclusion
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