Fulcrum Metals (AIM:FMET) shares dropped 12.5% to 7.66p after entering into a £6m financing package to fund pilot plant construction and testing.
The package underpins a pilot plant aimed at processing material from Fulcrum’s Teck Hughes and Sylvanite tailings projects and potential partner material, and Fulcrum is a company pioneering the use of innovative cyanide‑free technologies to recover precious and critical metals from mine waste and support site remediation.
"Pilot‑scale testing represents a key milestone in de‑risking our projects, refining technical parameters and advancing toward commercial deployment," Ryan Mee, Chief Executive Officer, said.
Key financial terms include a £500,000 immediate equity subscription at 8.75p, up to £5 million in unsecured convertible loans split into two £2.5 million facilities, a £500,000 second equity subscription tied to VWAP and a £2.5 million ATM to be launched with Clear Capital.
The First Loan was drawn in part immediately with £1 million gross (£900,000 net) advanced, conversion of the First Loan is at 11.375p and the Second Loan converts at a price equal to 130% of the VWAP on the trading day prior to its advance.
Repayment flexibility includes an initial 60‑day period with no repayments followed by structured monthly instalments, and YA has rights to convert loans into shares and to call amounts on certain default events.
