SUDBURY, ON, April 26, 2016 /CNW/ - Transition Metals
Corp. (XTM – TSX.V) ("Transition" or "the Company"), is pleased to
announce that it has executed a binding letter of intent to enter
into an Option and Joint Venture Agreement with Aldershot Resources
Ltd. (ALZ.H – TMX NEX) ("Aldershot") whereby Aldershot can earn a 51% interest and up to a
75% interest in the Company's Gowganda Gold project area located 75
kilometres southwest of Kirkland
Lake. The project hosts the Haultain Gold discovery, a zone
of widespread alteration and gold mineralization associated with a
suite of syenitic intrusions and structures discovered by
Transition in 2010. The mineralization and geologic framework
bears many similarities to other significant gold deposits
exploited elsewhere throughout the Abitibi Greenstone Belt.
To earn a 51% interest in the Property, Aldershot, within 75 days must enter into an
Option and Joint Venture Agreement with Transition that commits to
funding $400,000 in exploration
expenditures in year one and an aggregate of $2.0 million over 3 years. In addition,
Aldershot must issue shares valued
at $200,000 on the first
anniversary and shares valued at $250,000 on the third anniversary of the Option
and Joint Venture Agreement, with the value of the stock to be
based upon the 20 day volume weighed average price. Upon
earning a 51% interest, Aldershot
may opt to acquire an additional 24% interest in the Claims (for a
total of 75%) by committing to completing a Bankable Feasibility
Study. In consideration for entering into the binding letter of
intent, Aldershot has agreed to
issue the Company, subject to regulatory approval, 1,000,000 common
shares.
During the term of the Option, Transition would serve as program
Operator. Upon the Company earning its 51% or 75% interest in the
Property as the case may be, a Joint Venture would be formed, with
each party obliged to fund work programs on the property to
maintain its respective interest or dilute.
Company CEO and president, Scott
McLean commented, "We are pleased to enter into a
partnership with Aldershot on the
Gowganda Gold project. As a project generator, a measure of our
success is reflected by our ability to attract new funding
partnerships to advance the projects we have generated. We consider
the Haultain discovery to be one of the more significant new gold
systems to be discovered in the Abitibi greenstone belt in recent
years, and look forward to advance the project aggressively this
year in partnership with Aldershot."
About the Gowganda Gold Project
The Gowganda Gold Project is located adjacent to the town of
Gowganda Ontario in Nicol,
Haultain, and Van Hise townships, in
the Larder Lake Mining District. The center of the project is
located approximately 34 km (kilometres) west of Elk Lake (population 350 and 33 km southwest
of Matachewan (population 450).
The project consists of 3 property groupings (Haultain Gold,
Haultain West, and Nicol) comprised of 34 mining claims (3,424 ha).
The project is focused on inliers of Archean greenstone occurring
in the Gowganda area south of the
Round-Lake Batholith in the south-western part of the Abitibi
greenstone belt. The project area is bordered and/or overlain in
places by Proterozoic sediments of the Cobalt Embayment. The
Abitibi greenstone belt is a prospective geological district known
to host a number of metallic mineral deposit types including lode
gold deposits, volcanogenic massive base metal sulphide deposits
and magmatic nickel-copper sulphide deposits.
Transition has worked the project since 2010, completing Induced
Polarization (IP) geophysics, soil surveying, mapping, 10
mechanically stripped trenches and channel sampling and completing
21 drill holes totaling 2,258m. The claims host widespread
visible gold mineralization hosted by stockwork veining in altered
syenite ranging from nil to 3.5 g/t over significant widths in
channel samples and drilling as well as up to 97 g/t Au over short
channel widths (0.4 metres) within quartz veins. Reported drill
intercepts include 2.37 g/t over 7.06 metres and up to 82.5 g/t Au
over 0.4 metres. In 2015, Transition completed a detailed
structural study, additional soil sampling and mapping to enhance
drill targeting.
Qualified Person
The technical elements of this press release have been approved
by Mr. Greg Collins, P.Geo. (APGO),
a Qualified Person under National Instrument 43-101
About Transition Metals Corp
Transition Metals Corp (XTM -TSX.V) is a Canadian-based,
multi-commodity project generator that specializes in converting
new exploration ideas into Canadian discoveries. The award-winning
team of geoscientists has extensive exploration experience in
established, emerging and historic mining camps and actively
develops and tests new ideas for discovering mineralization in
places that others have not looked, which often allows the company
to acquire properties inexpensively. The team is rigorous in its
fieldwork and combines traditional techniques with newer ones to
help unearth compelling prospects and drill targets. Transition
uses the project generator business model to acquire and advance
multiple exploration projects simultaneously, thereby maximizing
shareholder exposure to discovery and capital gain. Joint venture
partners earn an interest in the projects by funding a portion of
higher-risk drilling and exploration, allowing Transition to
conserve capital and minimize shareholder's equity dilution. The
Company has an expanding portfolio that currently includes more
than 25 gold, copper, nickel and platinum projects primarily in
Ontario, Nunavut and Saskatchewan.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the
information in this news release constitutes "forward-looking
information" within the meaning of Canadian securities law. Such
forward-looking information may be identified by words such as
"plans", "proposes", "estimates", "intends", "expects", "believes",
"may", "will" and include without limitation, statements regarding
estimated capital and operating costs, expected production
timeline, benefits of updated development plans, foreign exchange
assumptions and regulatory approvals. There can be no assurance
that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors
that could cause actual results to differ materially include, among
others, metal prices, competition, risks inherent in the mining
industry, and regulatory risks. Most of these factors are outside
the control of the Company. Investors are cautioned not to put
undue reliance on forward-looking information. Except as otherwise
required by applicable securities statutes or regulation, the
Company expressly disclaims any intent or obligation to update
publicly forward-looking information, whether as a result of new
information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Transition Metals Corp.