Fulcrum Metals (LON: FMET) had contrasting periods during 2025 with the share price slumping in the early months before recovering later in the year and currently appearing set on an upward trend. Non-core assets have been sold so the company can concentrate on tailings operations.
Canada is a country that has large stocks of tailings from mining in recent centuries. The government and the local populations in these areas are keen to be offered ways of dealing with these tailings.
Canada-based Extrakt Process Solutions has developed non-cyanide separation technology that significantly reduces leaching times and recovery rates. Fulcrum Metals has signed a master licence agreement with Extrakt for the exclusive use of its extraction technology for tailings projects in the Kirkland Lake and Timmins mining regions of Canada.
In July, Fulcrum Metals, raised £1.29m at 3p/share. That was at a significant discount to the share price, and it slumped to a low of 3.6p that month. The disposal by Panther Metals (LON: PALM) of its 7.625 million shares in the company for 3.5p each had previously hit the share price.
The cash helps to advance the Teck Hughes mine gold tailings project and complete a mineral resource estimate, as well as environmental assessment. It will also fund the annual payment for the licence for the Extrakt technology. Metals One (LON: MET1) made an investment of £175,000 as part of the fundraising.
The company paid off £233,000 of convertibles and associated interest using some of the funds raised. The other £430,000 converted into 14.3 million shares at 3p each. The converted shares come with a warrant exercisable at 5p/share.
Processing progress
Fulcrum Metals achieved more than 70% gold and silver recoveries at Teck Hughes in Canada. This is part of the phase 3 metallurgical work. Previous gold recovery levels were 59.4%. Full results from the tests are expected in the first quarter of 2026, and this will support a mineral resource estimate. This will be followed by a phase 4 preliminary feasibility study.
Management is trying to generate additional funding though a bonus warrant acceleration offer that closes on 16 January 2026. Holders of warrants exercisable at 3p or 5p can exercise at that price, while anyone with warrants at a higher exercise price can exercise them for 5p each. Every two warrants exercised will be entitled to one new warrant exercisable at 10p.
Because the company is in a closed period the directors holding 3.6 million warrants do not expect to be able to take up the bonus warrant offer. Allenby and Clear Capital have warrants from when the company joined AIM and they run out in 2026 and are exercisable at prices well above 5p. That could generate more than £90,000. There are a lot more warrants in issue, but it is difficult to assess how many will be exercised.
The share price has fallen from 7.75p to 6.125p during the year, although it did nearly get back to the opening level in November.
If the warrants bring in sufficient cash, Fulcrum Metals will be able to work on multiple tailings projects to generate mineral resource estimates. There should be further good news about assay results in early 2026, which should help the share price to improve this year.