Aim-listed Fulcrum Metals has entered into a £6-million funding package with YA II, an institutional investor managed by Yorkville Advisors Global.

The funding comprises a combination of equity and convertible debt funding alongside an at-the-market subscription facility arranged with the company’s broker, Clear Capital Markets.

Fulcrum is pioneering the use of innovative cyanide-free technologies to recover precious and critical metals from mine waste and support site remediation.

The funding package enables Fulcrum to advance key objectives associated with the implementation of a standalone pilot plant to process material from the company’s Teck Hughes and Sylvanite tailings projects, in Ontario, and potential project partners' material.

In particular, the funding enables Fulcrum to secure long-lead equipment and engage key contractors for the delivery, fabrication and assembly for the pilot plant, as well as its operation.

The pilot plant will allow for real-world testing across Fulcrum’s projects to generate technical, environmental and economic data in support of a final investment decision on commercial deployment.

The pilot plant will also validate and further optimise prior bench and laboratory testing work by the company.

Fulcrum CEO Ryan Mee says the success of the Phase 3 programme at Teck-Hughes has generated strong interest from funding partners, resulting in a flexible financing package with Yorkville that fully funds the pilot scoping study, the pilot plant and pilot testing.

The financing structure combines equity at prevailing market prices with loan conversions at a 30% premium, while retaining flexibility to monetise noncore assets.

“With funding secured, we are advancing the pilot scoping study and can begin to secure critical path items and services ahead of implementation. Pilot-scale testing represents a key milestone in derisking our projects, refining technical parameters and advancing toward commercial deployment,” Mee states.

He adds that the company’s focus is on transitioning from concept to bankable assets with defined economic mineral reserves, which will position the company to deliver long-term shareholder value.

Yorkville is an investment manager providing flexible financing solutions to businesses worldwide.

Since its inception, Yorkville has structured and executed transactions totalling $7.5-billion with more than 750 companies in 22 countries.

THE FUNDING

The funding with Yorkville will comprise a  £500 000 cash subscription at a price of 8.75p apiece and up to £5-million of unsecured convertible loan note issuance split into two equal amounts of £2.5-million.

A loan amount of  £1-million can be drawn down immediately, while £1.5-million can be drawn down once the company puts in place the necessary share authorities at a general meeting on May 22.

A further £2.5-million can be advanced upon request by the company upon satisfaction of certain conditions and subject to the prior written consent of YA.

The first loan is convertible into new ordinary shares at 11.375p apiece and the second loan is convertible into ordinary shares at a price which is equivalent to 130% of the volume-weighted average price (VWAP) of the ordinary shares on the trading day prior to the advance of the second loan.

The funding package includes an additional £500 000 equity subscription at a price which is equal to the VWAP of the ordinary shares on the trading day immediately prior to the completion date of the second loan, while a £2.5-million at-the-market facility will be launched with Clear Capital as the company’s broker.

Application will be made to the LSE for admission of the 5.7-million new ordinary shares to be issued in respect of the first equity subscription to trading on the AIM on or about May 11.