Business
Signs LOI for the sale of its uranium assets
Signs LOI for the sale of its uranium assets.
About this update from Fulcrum Metals Plc
[{"type":"text","content":"\n\nFulcrum Metals plc / EPIC: FMET / Market: AIM / Sector: Mining\n \n \n3 April 2024\n \n \nFulcrum Metals plc\n(\"Fulcrum\" or the \"Company\" or the \"Group\")\n \nAnnounces Letter of Intent with Terra Balcanica Resources Corp. for the sale of Fulcrum's\nSaskatchewan uranium projects\n \nFulcrum Metals plc (LON: FMET), a company focused on mineral exploration and development in Canada, is pleased to announce that it has entered into a non-binding Letter of Intent (\"LOI\") with Terra Balcanica Resources Corp. (CNSX: TERA) (\"Terra\" or the \"Optionee\"), a mining explorer with projects in Bosnia and Herzegovina and Serbia. Pursuant to the LOI, Terra, through an Option Agreement (the \"Option Agreement\"), will be granted the option to acquire a 100% interest in Fulcrum's uranium projects (the \"Uranium Projects\") located in Saskatchewan, Canada. \n \nTerra will have the option to acquire the 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:\n \n \n\n\n\n\n\n\n\nCash to Fulcrum\n\n\nValue of Shares in Terra to Fulcrum\n\n\nExploration Expenditures required by Terra\n \n\n\n\n\nPayment to Fulcrum for exclusivity on execution of signing the letter of intent\n\n\nCA$7,500\n\n\n \n\n\n \n\n\n\n\nPayment to Fulcrum on closing of Option Agreement\n\n\nCA$25,000 less CA$7,500 exclusivity agreement\n\n\nCA$250,000\n\n\n \nComplete minimum work expenditures totalling CA$3,250,000\nPrior to fourth anniversary of the Option Agreement\n\n\n\n\nYear 1\n\n\nCA$50,000\n\n\nCA$350,000\n\n\n\n\nYear 2\n\n\nCA$75,000\n\n\nCA$500,000\n\n\n\n\nYear 3\n\n\nCA$75,000\n\n\nCA$650,000\n\n\n\n\nYear 4\n\n\nCA$75,000\n\n\nCA$1,250,000\n\n\n\n\nTotal\n\n\nCA$300,000\n\n\nCA$3,000,000\n\n\nCA$3,250,000\n\n\n\n\n \nThe new shares in Terra that could be issued to Fulcrum under the terms of the Option Agreement will be issued at the 10-day Volume Weighted Average Price (\"VWAP\") prior to the date of issuance. The shares issued to Fulcrum on closing of the Option Agreement will be capped at CA$0.065 per share, pre-consolidation by Terra. Cash generated from the sale of the Uranium projects will be used by ...