Financials

Chancery Royalty Sets Out Proposed US$20 Million Fulcrum Financing

The proposed arrangement would cover a 5% net smelter return royalty over gold production from Fulcrum Metals’ Teck-Hughes project in Kirkland Lake.

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Chancery Royalty has agreed a non-binding term sheet with Fulcrum Metals plc for proposed US$20 million royalty financing, alongside a £200,000 subscription for new Fulcrum shares. The proposed arrangement would give Chancery exposure to gold recovery from historic mine waste at the Teck-Hughes project in Kirkland Lake, Ontario.

#Proposed royalty financing

Under the proposed terms, Chancery would receive a 5% net smelter return royalty on gold production from Teck-Hughes. Fulcrum would retain the option to repurchase 2% of that royalty for US$10 million.

The royalty financing remains non-binding. Definitive agreements are subject to successful pilot-scale testing and customary conditions, so the proposed transaction has not been completed.

#Fulcrum equity subscription

Separately, Chancery has agreed to subscribe for £200,000 of new ordinary shares in Fulcrum at 8.5p per share. The proposed equity investment would make Chancery a shareholder in the AIM- and OTCQB-listed company.

#Toronto pilot facility

Fulcrum is developing a standalone pilot facility in Toronto designed to use cyanide-free technology to recover gold and critical minerals from mine waste. The facility is intended to help establish an operating model that could be applied to additional tailings projects and partnerships with third parties.

The proposed royalty structure would cover the Teck-Hughes project while also providing a potential framework for other mine-waste opportunities in Fulcrum’s wider Kirkland Lake pipeline.

#Additional royalty rights

Chancery would have a right of first refusal on future royalties linked to additional mine-waste projects across that pipeline for two years. The source describes this as extending potential royalty opportunities beyond the Teck-Hughes tailings project.

#Chancery background

Chancery Royalty is based in Bermuda and focuses on gold and silver royalties. The company has described a target public listing in early 2027. It is also forecasting growth from ~4,000 GEOs in 2027 to over 28,000 GEOs within four years.

#Key Takeaways

  • Chancery Royalty has agreed a non-binding term sheet for proposed US$20 million royalty financing with Fulcrum Metals.
  • The proposed royalty would be 5% of net smelter returns from gold production at Teck-Hughes, with Fulcrum able to repurchase 2% for US$10 million.
  • Chancery has agreed to a £200,000 subscription for new Fulcrum shares at 8.5p per share.
  • Definitive agreements depend on successful pilot-scale testing and customary conditions.
  • Chancery would receive a two-year right of first refusal over certain future royalties in Fulcrum’s Kirkland Lake pipeline.

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