By Anthony O. Goriainoff
Fulcrum Metals said on Monday that it has agreed to buy a 100% interest in Ontario’s Tully gold project from 1911 Gold Corp. for 800,000 Canadian dollars ($598,287) in cash.
The London-listed Canada-focused mineral exploration and development company said that under the agreement a 1.5% net smelter return royalty will also be paid in 1911’s favor.
The company also said that in conjunction with the purchase it raised 520,000 pounds ($662,948) via a loan note issue–with a GBP1 nominal amount for each note–and that certain directors intend to subscribe for GBP195,000 of the loan notes.
“The acquisition is in line with the company’s stated strategy to identify and acquire projects that have the potential to increase shareholder value,” the company said. “Tully is an exciting project that benefits from an existing gold resource which has the potential to be increased and has excellent infrastructure at relatively low all-in costs.”
Write to Anthony O. Goriainoff at [email protected]
Read the full article here
