Terra Balcanica Executes Letter of Intent For Option Agreement To
Acquire 100% Interest In Advanced Saskatchewan Uranium
Portfolio
Terra Balcanica Resources Corp. (“
Terra” or the
“
Company”) (
CSE:TERA; FRA:UB1), a
multi-jurisdictional exploration company focused on supporting the
global transition to clean energy, is pleased to announce that it
has entered into a non-binding Letter of Intent (the
“
Agreement”) with a wholly owned subsidiary of Fulcrum
Metals Plc., (“
Fulcrum”, AIM:FMET). Pursuant to the
Agreement, Terra will have an option (the “
Option
Agreement”) to acquire a 100% interest in
Fulcrum’s Charlot-Neely, Fontaine Lake, Snowbird and South
Pendleton uranium licences (the “
Licences”) located in
northern Saskatchewan, Canada and collectively encompassing 596.71
km2 of highly prospective ground for a uranium discovery.
Highlights
- Proximal to northern and
southeastern edges of the Athabasca Basin (“Basin”) in northern
Saskatchewan, a premium mining district and leading global source
of high-grade uranium;
- Charlot-Neely is located within the
emerging Uranium City district on the northwestern margin of the
Basin
- Historical work at the projects has
demonstrated evidence of uranium mineralization along favourable
structural trends with prospective target horizons based on
electromagnetic conductors;
- Future exploration requires the
undertaking of a modern systematic geologic fieldwork to determine
the uranium potential.
Terra Balcanica CEO, Dr. Aleksandar Mišković,
commented: “In our pursuit of high-quality assets worldwide,
Terra Balcanica has secured an option to acquire a Canadian
uranium portfolio covering close to 600 km2 with tremendous
potential for discovery. In a world transitioning to green energy
solutions, the acquisition of these assets provides a more robust
and diverse exploration portfolio for Terra. Although there has
been an increase in activity in the uranium sector, we are at the
early stages of a commodity super-cycle and being able to acquire
such a large, advanced uranium portfolio on favourable terms was a
clear opportunity for our shareholders. It is the right time,
jurisdiction, and commodity to augment our advanced Balkan
portfolio and to further participate in the changing energy
landscape. We look forward to working with Fulcrum to apply their
technical and jurisdictional expertise to advance these
Saskatchewan uranium projects, and we are excited by the addition
of a strategic commodity to Terra’s existing polymetallic
portfolio.”
Portfolio Overview and Discovery
Opportunity
The licence portfolio totals 596.71 km2
targeting major NE-SW trending structures along strike from
historic uranium mines and projects that have attracted significant
investment. Discoveries such as the Arrow (4.3Mt at 0.83% U3O8;
https://www.nexgenenergy.ca/exploration/overview) and Triple R
(2.7Mt at 1.94% U3O8
https://fissionuranium.com/projects/triple-r-deposit/project-overview/)
have proved the concept of exploring along structures outside of
the Athabasca basin.
Figure 1. Regional map of northern Saskatchewan, Canada
which is one of the world's leading sources of high-grade uranium
and supplies about 20% of the world's uranium. The blue symbols
illustrate locations of the four optioned exploration properties
totalling 596 km2 in the context of the world-famous Athabasca
Basin, a Paleoproterozoic siliciclastic depo-centre (click here to
view image).
Key Terms of Agreement
On closing of the transaction, Terra will have a
four-year option to acquire 100% of Fulcrum’s owned uranium
licences.
In consideration for the four-year option and at
the time a definitive agreement is announced by way of news release
and subject to a CSE approval, Terra shall pay Fulcrum C$7,500 for
exclusivity on execution of signing of the Letter and pay Fulcrum
C$25,000 less the C$7,500 exclusivity payment on execution of
closing of the Option Agreement.
Additionally, Terra shall pay Fulcrum cash
according to the schedule below:
- C$50,000 on the first anniversary
of closing of the Option Agreement;
- C$75,000 on the second anniversary
of closing of the Option Agreement;
- C$75,000 on the third anniversary
of closing of the Option Agreement;
- C$75,000 on the fourth anniversary
of closing of the Option Agreement;
and issue Fulcrum shares of TERA at the 10-Day
Volume Weighted Average Price (“VWAP”) prior to the date of
issuance as per the following schedule:
- C$250,000 on closing of the Option Agreement with the initial
share payments capped at C$0.065/share, pre-consolidation;
- C$350,000 on the first anniversary
of closing of the Option Agreement;
- C$500,000 on the second anniversary
of closing of the Option Agreement;
- C$650,000 on the third anniversary
of closing of the Option Agreement;
- C$1,250,000 on the fourth
anniversary of closing of the Option Agreement;
Terra will also complete minimum work
expenditures totalling $3,250,000 prior to the fourth anniversary
of the Option Agreement and grant Fulcrum a 1.0% Net Smelter Return
(“NSR”) on all claims with buydown option of 0.5% NSR for
C$1,000,000.
As part of the Option Agreement and for
terminating the existing prior agreement (the “Prior
Agreement”) between Fulcrum and Global Energy Metals Corp.
(“Global Energy”), Global Energy will be compensated with
C$150,000 in shares in TERA on closing of the Option Agreement and
a 0.5% NSR on all claims.
The transaction contemplated above is an “Arms’
Length” in accordance with applicable securities legislation. The
CSE has not passed upon the merits of the proposed transaction and
has neither approved nor disapproved the contents of this news
release.
Restructuring Board of Directors
Mr. Steven Latimer, ICD.D, CFA, MBA, has stepped
down as a director of the Company to focus on his other business
interests but he will continue to act as a Strategic Advisor to the
Company. Giulio T. Bonifacio, Terra’s Non-Executive Chairman of the
Board commented: “We are very thankful for Steve’s involvement to
date while looking forward to his future role and contributions as
key strategic advisor and shareholder of the Company.”
Qualified Person
Dr. Aleksandar Mišković, P.Geo, is the Company’s
designated Qualified Person for this news release within the
meaning of National Instrument 43-101 Standards of Disclosure of
Mineral Projects (“NI 43-101”). Dr. Mišković has reviewed and
validated the information contained in this news release as factual
and accurate.
About the Company
Terra Balcanica is a polymetallic exploration
company targeting large-scale mineral systems in the Balkans of
southeastern Europe. The Company has 90% interest in the
Viogor-Zanik Project in eastern Bosnia and Herzegovina and owns
100% of the Ceovishte mineral exploration licence in southern
Serbia. The Company emphasizes responsible engagement with local
communities and stakeholders. It is committed to proactively
implementing Good International Industry Practice (GIIP) and
sustainable health, safety, and environmental management.
ON BEHALF OF THE BOARD OF DIRECTORS
Terra Balcanica Resources Corp.
“Aleksandar Mišković”
Aleksandar MiškovićPresident 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.