AIM-quoted Fulcrum Metals (LON: FMET) has signed a master licence agreement with Extrakt Process Solutions for the exclusive use of Extrakt’s extraction technology for tailings projects in the Kirkland Lake and Timmins mining regions.
The non-cyanide technology significantly reduces leaching times and gold recovery rates have been up to 59.4%. This could be raised to 70%. The exclusivity lasts for four years and could be extended to up to 12 years.
There is an annual fee payable in cash, and the agreement provides a framework for the licensing of individual sites.
The technology will be initially used on the Teck Hughes and Sylvanite projects, which have an estimated $700m of gold, gallium, tellurium and silver resources. These tailings are ready for processing. Teck Hughes is likely to be the first area for production and other sites can then be tied in. There are more than 70 mine waste sites in the region.
Teck Hughes could have an NPV7.5 of $33m, based on a gold price of $2,899/ounce. Higher recovery rates or an increased gold price could substantially increase the NPV.
A letter of intent has been signed for the disposal of the Tully gold property to Loyalist Exploration. On completion there will be cash payment of C$500,000, plus a 19.9% stake in Loyalist Exploration with an implied value of C$892,550 at a share price of C$0.01. There is also a 2% net smelter royalty and future milestone payments.
The cash will come in useful in funding the core operations so that production can begin at Teck Hughes. Last September, Fulcrum Metals raised £773,500 at 8p/share. That funds the immediate requirements.
In April, the share price was knocked by the disposal by Panther Metals (LON: PALM) of its remaining stake in Fulcrum Metals. The 7.625 million shares were dumped at 3.5p each. They wee bought by existing shareholders. The Nicholas Nugent and James Brearley nominee account took their stake to 10.3%.
The share price recovered 2.41% to 4.25p. That is well below the 7.75p that the shares were chosen as one of the top 20 stock picks for 2025. Further news of progress should help the share price to recover further.