Fulcrum Metals (AIM:FMET) has signed a non-binding US$20 million royalty financing term sheet with Chancery Royalty, alongside a £200,000 direct equity investment, for the company's Teck-Hughes tailings project in Kirkland Lake, Ontario.
The AIM-listed miner uses cyanide-free technology to recover precious and critical metals from mine waste, and frames the proposed royalty as a non-dilutive path to production funding for Teck-Hughes, which carries a conceptual production profile of approximately 12,000 ounces of gold per year.
Under the proposed structure, Chancery would acquire a 5% net smelter return (NSR) royalty on gold production from the site for US$20 million, with Fulcrum retaining the right to repurchase 2% of that royalty for US$10 million at any point within two years of achieving commercial production.
Fulcrum would retain full ownership of the underlying mineral rights and operational control, with the royalty representing a financing interest in future gold output only.
Chancery would also receive a right of first refusal over future royalties on additional mine waste projects within the Kirkland Lake district for two years, subject to definitive agreements.
The deal remains conditional on pilot-scale testing, environmental and permitting reviews, due diligence, and board approvals.
"Teck-Hughes, with its initial conceptual production profile of approximately 12,000 ounces of gold per annum, represents the first step in executing that broader strategy," said Chief Executive Ryan Mee.
