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(Sharecast News) - Fulcrum Metals confirmed on Monday that Terra Balcanica Resources has exercised the first-year option to acquire 100% of Fulcrum's uranium assets in Saskatchewan, triggering a cash and equity payment under the terms of an agreement signed in July last year.
In return for exercising the option, Fulcrum would receive CAD 50,000 (27,120) in cash and CAD 350,000 worth of Terra common shares, amounting to 3,804,347 shares priced at 9.2 Canadian cents each.
The AIM-traded firm said the share price was based on a 10-day volume-weighted average price up to 8 July.
It said the new shares were expected to be issued by 18 July, and would be subject to a four-month holding period under Canadian securities law.
The uranium portfolio included the Charlot-Neely Lake, Fontaine Lake, Snowbird, and South Pendleton projects.
Fulcrum said it would retain exposure to future upside from the projects via its growing equity interest in Terra.
Following the latest issuance, Fulcrum said it would hold 5,801,498 Terra shares, valued at CAD 533,738 and representing 9% of Terra's issued capital.
The CAD 50,000 cash payment would be applied to Fulcrum's ongoing working capital requirements.
At 1144 BST, shares in Fulcrum Metals were up 1.1% at 4.6p.
Reporting by Josh White for Sharecast.com.
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