Micro-Cap Pops on Strategic $1M Royalty Agreement

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Tuesday, May 27, 2025

Today, news of a significant royalty deal surfaced, providing immediate non-dilutive funding while bringing a prominent industry partner on board. Shares of the micro-cap rallied on the announcement, signaling strong investor interest in both the deal and the company's broader potential.

Forum Energy Metals Corp. (TSX-Venture: FMC) (OTCQB: FDCFF) has entered into an agreement to sell a 2.0% gross overriding royalty on its 100% owned Aberdeen Uranium Project in Nunavut, Canada, to Uranium Royalty Corp. (URC) for CAD$1 million. The deal is expected to close by the end of May 2025. As part of the agreement, Forum retains the right to repurchase 0.5% of the royalty for CAD$1 million within six months of a successful pre-feasibility study, with that option expiring seven years after issuance.

The Aberdeen Uranium Project is strategically located adjacent to the Orano-operated Kiggavik Project, one of the world’s largest undeveloped uranium resources. Aberdeen spans over 95,000 hectares in the underexplored Thelon Basin, considered a promising analogue to Saskatchewan’s prolific Athabasca Basin. Drilling on the project has already returned high-grade uranium results, indicating strong exploration potential.

Uranium Royalty Corp., the world’s only publicly traded uranium-focused royalty and streaming company, continues to expand its portfolio of uranium interests through strategic investments like this one. With extensive expertise in uranium finance, project development, and trading, URC is positioning itself as a key capital provider in a growing market driven by the rising demand for carbon-free nuclear energy.

Shares of FMC were moving higher by 10% at $0.055 while U.S. listed shares traded up 8.08% at $0.03772 in late-morning trading.

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