Fulcrum Metals plc has entered into a mineral claim purchase agreement with 1911 Gold Corp. to acquire a 100% interest in the Tully Gold project located in Timmins, Ontario. The purchase price is CAD800,000 cash plus a 1.5% net smelter return royalty. Tully is located within the Timmins-Porcupine Gold Camp and has an historic Indicated and Inferred Mineral Resource consistent with NI-43-101 reporting requirements.
In addition, Fulcrum Metals has raised £325,000 through the issue of unsecured convertible loan notes to new and existing shareholders. Certain directors of the company have also indicated their intention to subscribe for £195,000 of loan notes. The gross proceeds of the fundraising will be £520,000. The net proceeds will be used to satisfy the consideration due under the purchase agreement and for working capital needs.
The loan notes have a nominal amount of £1 and are due for repayment on July 31, 2025. They are convertible at 18.5 pence per ordinary share at the election of the subscriber. Interest is payable at 12% per annum compounded semi-annually. The loan notes automatically convert into new ordinary shares if the Fulcrum Metals share price reaches a volume-weighted average of 24 pence for five consecutive trading days.
The Tully Gold project offers an opportunity to acquire an advanced gold exploration project with an estimated 107,000 ounces of gold resource. It is located along the prolific Timmins-Porcupine Gold Belt and has an established mine camp with excellent infrastructure. The historic gold resource is 107,000 ounces, with 76,000 ounces in the Indicated category and 31,000 ounces in the Inferred category. The gold resource has been delineated over 600 meters of traced strike length through drilling.