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.
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.
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.
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.
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 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.
Chancery Royalty has agreed a non-binding term sheet for a proposed US$20 million royalty financing and agreed a £200,000 strategic equity investment in Fulcrum Metals plc (AIM:FMET)(OTCQB:FULMF). The financing remains proposed and non-binding.
Under the proposed financing, Chancery would receive a 5% net smelter return royalty over gold production from Fulcrum’s Teck-Hughes project in Kirkland Lake. Fulcrum would retain the right to repurchase 2% of the royalty for US$10 million.
The source states that Chancery would subscribe for new ordinary shares in Fulcrum for £200,000 at 8.5p per share.
The source states that definitive agreements are subject to successful pilot-scale testing and customary conditions. It does not state that the proposed royalty financing has completed.
Fulcrum is developing a standalone pilot facility in Toronto to process cyanide-free technology for recovering gold and critical minerals from mine waste. The facility is designed to establish an operating model for a commercial platform that can be scaled across additional tailings projects and third-party partnerships.
The source states that Chancery would have a right of first refusal over future royalties on additional mine-waste projects across Fulcrum’s wider Kirkland Lake pipeline for two years. It describes this as a potential framework for future royalty opportunities beyond the Teck-Hughes tailings project.
The source describes Chancery’s public listing as targeted for early 2027. Chancery is quoted as forecasting growth from ~4,000 GEOs in 2027 to over 28,000 GEOs within four years; the source does not provide further detail on the assumptions or outcomes for that forecast.