Announcement • Jul 08
Fulcrum Metals plc Reports Updated Tully Gold Resource activates Additional Consideration for Fulcrum
Fulcrum Metals PLC updated Mineral Resource Estimate announced by Loyalist Exploration Limited for the Tully Gold Project in Timmins, Ontario, Canada. The updated Mineral Resource Estimate exceeds the 200,000 ounce gold resource threshold associated with additional contractual consideration payable to Fulcrum under the terms of the agreement entered into on 2 October 2025 between the Company and Loyalist. Loyalist has announced an updated NI 43-101 Mineral Resource Estimate for the Tully Gold Project containing approximately 265,000 ounces of gold, which occupies only 15% of the known Mafic Tuff host unit. The updated Mineral Resource Estimate exceeds the 200,000-ounce contractual resource threshold under the Purchase Agreement entered into between Fulcrum and Loyalist on 2 October 2025. Under the Purchase Agreement, 15,000,000 additional Loyalist shares, or cash in lieu thereof, are due to Fulcrum within 60 days following the filing of a technical report in respect of the Tully Gold Project in which a gold resource is re-evaluated or restated to NI 43-101 standard exceeding 200,000 ounces. Based on Loyalist's current prevailing market price of 3.5 cents, the milestone consideration represents a potential additional value in excess of CAD 500,000 to Fulcrum, subject to settlement in shares. Fulcrum retains further exposure to the future success of the Tully Gold Project through additional milestone consideration linked to project advancement and a 2% net smelter return royalty. Loyalist has reported an updated NI 43-101 Mineral Resource Estimate containing approximately 265,000 ounces of gold, representing an important advancement of the Tully Gold Project and substantially increasing geological confidence in the resource. Under the terms of the purchase agreement entered into between Fulcrum and Loyalist on 2 October 2025, an additional 15,000,000 Loyalist shares, or cash in lieu thereof, are due to the Company within 60 days following the filing of a technical report on the Tully Gold Project in which a gold resource is re-evaluated or restated to NI 43-101 standard exceeding 200,000 ounces. Accordingly, the updated Mineral Resource Estimate exceeds the applicable 200,000-ounce contractual threshold, with the milestone consideration becoming due in accordance with the terms of the Purchase Agreement following the filing of the technical report. Based on Loyalist's current prevailing market price of 3.5 cents, the milestone consideration represents in excess of CAD 500,000 of additional value to Fulcrum, subject to settlement in shares or cash in accordance with the Purchase Agreement. Under the terms of the October 2025 transaction, Fulcrum retained exposure to the future success of the Tully Gold Project through a series of milestone payments linked to resource growth and project advancement, together with a 2% net smelter return royalty. The latest resource update represents the first major resource milestone achieved under that structure. The Company currently holds 78,972,740 shares in Loyalist, representing approximately 18.7% of Loyalist's current issued and outstanding share capital on a non-diluted basis. Subject to the filing of the technical report and settlement of the milestone consideration entirely through the issue of the 15,000,000 additional Loyalist shares, Fulcrum would hold 93,972,740 shares in Loyalist.
