Fulcrum Metals plc (AIM: FMET; OTCQB: FULMF), a technology-led natural resources company developing a mine-waste recovery platform in Canada, has announced a settlement arrangement with Loyalist Exploration Limited (CSE: PNGC) that will increase its shareholding to approximately 19.9% of Loyalist's enlarged issued share capital. The agreement follows the confirmation in July 2026 that Tully Gold Project's updated mineral resource exceeded the 200,000-ounce contractual threshold triggering additional consideration. Under the amended disposal agreement, 13.4 million Loyalist shares will be issued initially, with a further 1.6 million deferred to keep Fulcrum's ownership below 20%. Investors may be watching how this expanded equity position, alongside retained milestone rights and a 2% net smelter return royalty, supports Fulcrum's broader mine-waste recovery strategy.

Key Points

  • Fulcrum Metals plc (AIM: FMET; OTCQB: FULMF) — technology-led mining company focused on recovering precious and critical metals from historical mine waste in Ontario, Canada
  • Settlement with Loyalist Exploration Limited will raise Fulcrum's holding to 92,372,740 Loyalist shares, representing approximately 19.9% of Loyalist's enlarged issued share capital
  • 13,400,000 shares issued initially; 1,600,000 shares deferred; further milestone entitlements of C$50,000 cash, C$100,000 cash, and 15,000,000 additional Loyalist shares or cash in lieu retained
  • Investors should watch for Loyalist's progress at Tully, timing of deferred share issuance, and advancement of Fulcrum's Teck-Hughes and Sylvanite mine-waste projects

Tully Mineral Resource Milestone Triggers Increased Loyalist Share Consideration for Fulcrum

The settlement stems from Fulcrum's 8 July 2026 announcement confirming that Tully's updated mineral resource had exceeded the 200,000-ounce contractual threshold, triggering an entitlement to 15,000,000 Loyalist shares, or cash in lieu, payable within 60 days of filing the supporting technical report. The parties subsequently agreed to amend the disposal agreement to allow staged issuance. Fulcrum currently holds 78,972,740 Loyalist shares, and the initial issuance of 13,400,000 shares will bring its total holding to 92,372,740 shares. The remaining 1,600,000 shares will be issued as increases in Loyalist's share capital create capacity below the 20% ownership threshold, with the entitlement to the balance formally preserved.

Retained Royalty and Future Milestone Payments Provide Fulcrum with Layered Tully Exposure

Beyond the equity increase, Fulcrum retains a 2% net smelter return royalty over Tully, of which Loyalist may repurchase half — equivalent to 1% — for C$1 million, subject to contractual adjustment. The company also retains entitlements to a C$50,000 cash financing milestone, C$100,000 cash upon completion of a qualifying drilling intercept of at least 6 g/t gold over 8 metres or equivalent, and a further 15,000,000 Loyalist shares, or cash in lieu, upon announcement of a decision to mine at Tully. The announcement states these payments remain conditional on achieving the relevant milestones.

Fulcrum's Cyanide-Free Mine-Waste Platform at Teck-Hughes and Sylvanite Remains Operational Focus

Fulcrum is developing a scalable platform to recover precious and critical metals from historical mine-waste sites using cyanide-free technology licensed from Extrakt Process Solutions. Its primary projects are the legacy Teck-Hughes and Sylvanite gold mine-waste sites in the Kirkland Lake region of Ontario, where historical estimates — which the company states it must verify — indicate a combined total of more than 10 million tonnes. The company holds exclusive rights to deploy Extrakt's technology across the Kirkland Lake and Timmins mining districts, which the announcement states have historically produced more than 110 million ounces of gold and contain more than 70 documented legacy mine-waste sites.

Strategic Logic: Tully Participation Preserved While Capital Concentrates on Pilot Facility

Chief Executive Officer Ryan Mee stated in the announcement that the transaction allows Fulcrum to retain participation in Tully's potential future success while concentrating operational resources on Teck-Hughes, Sylvanite, and the development of a multi-project pilot facility. The pilot facility is intended to accelerate development decisions at the two initial projects and establish a repeatable pathway for successive mine-waste sites within Fulcrum's exclusive Extrakt rights territory. The arrangement is structured so that Loyalist funds and advances Tully independently, reducing direct capital demands on Fulcrum whilst the equity, milestone and royalty entitlements maintain meaningful financial exposure to the asset.