Fulcrum Metals (LSE:FMET) has signed a non-binding term sheet with Chancery Royalty covering a proposed US$20 million royalty financing package alongside a £200,000 equity subscription to support the development of its Teck-Hughes tailings project in Kirkland Lake, Ontario. The proposed funding structure includes a 5% net smelter return royalty, with Fulcrum retaining the option to repurchase 2% of the royalty in the future. The financing is intended to provide non-dilutive capital as the company progresses the project towards commercial production using its cyanide-free processing technology.
The proposed transaction strengthens Fulcrum’s funding strategy while allowing the company to retain full ownership and operational control of the Teck-Hughes project. Chancery would become both a shareholder and a potential long-term financing partner, supporting the advancement of the project through the next stages of development. Subject to due diligence, successful pilot-scale testing and the execution of definitive agreements, Chancery would also receive a right of first refusal over future royalty opportunities within the Kirkland Lake district, creating a framework that could support additional mine waste recovery projects and further expand Fulcrum’s sustainable metals recovery business.
The agreement marks another step in Fulcrum’s strategy of developing environmentally focused mining solutions while securing alternative sources of project finance. By combining innovative cyanide-free processing technology with non-dilutive funding, the company aims to accelerate the commercialisation of legacy mine waste assets while maintaining flexibility for future growth.
More about Fulcrum Metals Plc
Fulcrum Metals plc is a technology-led natural resources company focused on recovering precious and critical metals from historic mine waste in Canada using cyanide-free processing technologies developed in partnership with Extrakt Process Solutions. Listed on AIM, the company also owns a portfolio of exploration and development assets across Ontario and Saskatchewan and holds exclusive rights to deploy its cyanide-free extraction technology throughout the historic gold mining districts of Timmins and Kirkland Lake.
Leave a Reply