Fulcrum Metals Plc (LSE:FMET) shares rose around 12% on Monday after it completed the sale of its Tully gold project, in Ontario, to Loyalist Exploration Limited.
The deal gave Fulcrum C$500,000 in cash, plus Loyalist shares currently valued at C$1.57 million and a 2% net smelter return royalty on the project.
Further milestone payments of up to CAD$150,000 and further Loyalist shares may follow in the future, depending on future exploration and development outcomes. Fulcrum now owns 19.99% of Loyalist’s issued share capital, and that could climb to 26.1%.
Deal proceeds are earmarked for Fulcrum’s tailings recovery projects in the Kirkland Lake region of Ontario.
"The funds received will help us execute our strategy as a technology-led company focused on recovering precious and critical metals from mine waste tailings in Kirkland Lake," chief executive Ryan Mee said.
Mee added: "Tully is a highly prospective gold project, and we are confident that Loyalist's strong technical team will take Tully to a higher level."
In London, Fulcrum shares were up 11.88% changing hands at 6.99p.