Pursuant to the Agreement, on closing (the “Option Closing Date”), Fulcrum and Fulcrum Canada will grant Terra the Option to acquire a 100% interest in the Licences, comprising Fulcrum’s Charlot-Neely Lake,
In consideration for the Option, Terra has paid
Additionally, Terra may exercise the Option by paying Fulcrum cash according to the schedule below:
C$50,000 on the first anniversary of the Option Closing Date;C$75,000 on the second anniversary of the Option Closing Date;C$75,000 on the third anniversary of the Option Closing Date;C$75,000 on the fourth anniversary of the Option Closing Date; and
issue Fulcrum Canada common shares of Terra at the 10-day volume weighted average trading price of Terra’s shares ending three trading days prior to the date of issuance, subject to the minimum pricing requirements of the Canadian Securities Exchange (the “CSE”), as per the following schedule:
C$250,000 of Terra shares on the Option Closing Date;C$350,000 of Terra shares on the anniversary of the Option Closing Date;C$560,000 of Terra shares on the second anniversary of the Option Closing Date;C$650,000 of Terra shares on the third anniversary of the Option Closing Date;C$1,250,000 of Terra shares on the fourth anniversary of the Option Closing Date; and
Terra will also complete minimum work expenditures totalling
Upon the exercise of the Option, Terra will grant Fulcrum a 1.0% net smelter returns royalty (“NSR”) on all claims with a buy-down option for half of the NSR, being a 0.5% NSR, for the cash payment of
Global Energy Metals Corp. (“Global Energy”) acted as a finder for this transaction by introducing the parties and facilitating the negotiation of the Agreement. As compensation for Global Energy’s services, the Company, Fulcrum Canada and Global Energy entered into a finder’s agreement (the “Finder’s Fee Agreement”), in which Global Energy will be compensated with 1,198,291 shares of Terra on the Option Closing Date subject to the minimum pricing requirements of the CSE and, upon the exercise of the Option, the Company will grant Global Energy a 0.5% NSR on all of the Licences, subject to a buy-down option of the entire NSR for the cash payment
The Agreement replaces the Letter of Intent between the Company and Fulcrum signed on
The transaction contemplated under the Agreement and the Finder’s Fee Agreement are subject to the approval of the CSE.
The common shares of Terra issued under the terms of the Agreement and the Finder’s Fee Agreement will be subject to a hold period of four months from the date of issuance in accordance with applicable securities laws in
Highlights
- 596.71 km2 of land tenure along northern and southeastern edges of the
Athabasca Basin , a premium mining district and the leading global source of high-grade uranium with over 70 million lbs of U3O8 produced; - Surface uranium samples of up to 6.22 % U3O8 at Charlot-Neely and up to 1.44 % U3O8 at
Fontaine-Lake licences with anomalous surface radiometric readings of >7,000 cps as well as rare earth element assays; - A historic (non-43-101 compliant) diamond drill hole intercept of 3.91 g/t Au over 45.8 m from surface at the Charlot-Neely licence;
- The recent drill hole intercept of 1,309 cps over 8.7 m by Aero Energy and
Fortune Bay on the Murmac project (see news release datedJune 25 th, 2024) is located only 20 km SW of Terra’sCharlot-Neely Lake licence and marks the firstBeaverlodge District uranium discovery in more than half a century - Historical work has demonstrated multiple occurrences of uranium mineralization along NE-SW structural corridors such as
Black Bay fault,Black Lake shear, and the Snowbird tectonic zone and the many associated fault splays and graphitic conductors;
Terra Balcanica CEO, Dr. Aleksandar Mišković, commented: “The agreement signed with Fulcrum marks an exciting new chapter in Terra’s corporate history as a high-quality target generator and explorer of critically needed commodities. The Company is now exposed to a world-class uranium district that is experiencing a mining renaissance as evidenced by the recent discovery made just 20 km from of our flagship Charlot-Neely licence. With close to 600 km2 of land tenure, we are supremely positioned to take early-mover advantage of opportunities along the entire northern and eastern margins of
Portfolio Overview
The optioned terrain in norther
Figure 1. Saskatchewan’s
Southeastern margins of the
Figure 2. Three styles of uranium mineralization in northern
Terra will focus on this exploration paradigm however, the Company will aim to target major NE-SE trending faults and associated secondary structural corridors along northern margins of the Basin where close to 32,000 tons of U3O8 have been produced in the
Charlot –
The flagship
Figure 3. Tenure map of the
The licence benefits from work completed in 2023 which confirmed uranium mineralization on surface of up to 0.55 % U and assays of 0.8% U3O8 confirmed at Peacock showing in 2023, and extensive zones of up to 7,000 cps (counts per second) radioactivity. Historic occurrences are noted of up to 6.22 % U3O8. The first order controls for basement hosted mineralisation are present with large scale structural features, linear conductors that possibly contain graphitic horizons as important reductants and surface uranium anomalism. There is also note of gold drilling intercept of 3.91 g/t Au over 45.8 m from surface (DDH17) which adds additional exploration appeal to the licence (Figure 4).
The Company will focus on high-grade sources of the surficial uranium showings along most radioactive segments of the graphitic conductors as previously untested drill targets.
Figure 4.
These licences stretch over 388 km2 and straddle the
The
Figure 5.
Exploration Plan
The Company intends to review cumulative legacy data set by including company assessment reports, historic governmental maps and surveys, extracting findings from research papers, compiling locations of key showings and combining it all into an internally consistent GIS database. Subsequently, Terra will commission a combined, >3,000 line-kilometer, airborne geophysical survey comprising V-TEM Plus electromagnetic and radiometric measurements along a tight, 150-spaced flight grid over all four licence clusters. Data obtained from the geophysics will be combined with the existing GIS database to identify high-priority target zones to follow up by a month and a half of detailed field work including ground radiometrics and lithological sampling in autumn of 2024. Our goal is to immediately generate and rank a dozen drill targets along key structural corridors to be tested in early spring of 2025. Work with the local First Nations to obtain social license to operate and work collaboratively will begin in earnest this summer.
Qualified Person
Dr. Aleksandar Mišković,
About the Company
Terra Balcanica is a polymetallic and energy metals exploration company targeting large-scale mineral systems in the Balkans of southeastern
ON BEHALF OF THE BOARD OF DIRECTORS
“Aleksandar Mišković”
Aleksandar Mišković
President and CEO
For the complete information on this news release, please contact Aleksandar Mišković at amiskovic@terrabresources.com, +1 (514) 796-7577, or visit www.terrabresources.com/en/news.
Cautionary Statement
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “will”, “intends” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. The Company does not undertake to update these forward-looking statements, except as required by law.
Source:
2024 GlobeNewswire, Inc., source