LONDON, UK: Fulcrum Metals plc (LON: FMET), a Canadian mineral exploration and development company, has signed a non-binding Letter of Intent (LOI) with Global Energy Metals Corporation (TSXV: GEMC) for an option and royalty agreement over its Saskatchewan uranium properties.

The deal would give Global Energy Metals a two-year option to acquire a 19.9% stake in Fulcrum’s uranium portfolio, which includes the Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects. Global Energy would also pay Fulcrum 5 million shares and a 0.5% net smelter returns royalty in the properties.

To exercise the option, Global Energy would pay Fulcrum CAD$1million in cash and shares. If the option is not exercised within a year, Global Energy would pay Fulcrum CAD$175,000 in cash and shares or lose the option.

The LOI is subject to the negotiation and execution of a definitive agreement within 45 days. Fulcrum’s non-executive director Mitchell Smith, who is also the CEO and a major shareholder of Global Energy, has abstained from voting on the transaction.

The deal would provide Fulcrum with exposure to Global Energy’s battery metals projects and royalties, and enable both companies to explore further monetisation of the uranium properties.

Ryan Mee, Chief Executive Office of Fulcrum, commented: “The letter of intent clearly demonstrates the underlying value Fulcrum has in its uranium portfolio and validates the company’s strategy and management’s approach so far.

“We have received interest from several companies about the possibility of investing in our uranium projects, either through a joint venture or acquisition.  We believe that the agreement with Global Energy Metals is in the best interest of all shareholders as we seek to monetise the uranium assets without diluting shareholders and provides Fulcrum with exposure to GEMC’s active battery metal and royalty portfolio.  Importantly this proposed transaction with GEMC would enable Fulcrum to retain operational control of its uranium portfolio.

“I look forward to working with Global Energy to further delineate value for the uranium project portfolio at a time when demand for uranium has been picking up globally as countries focus on transitioning to cleaner sources of energy and updating the market in due course as opportunities are matured.”

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