SUDBURY, ON, Nov. 8, 2016 /CNW/ - Transition Metals Corp. (XTM
– TSX.V) ("Transition" or "the Company"), is pleased to announce
that it has executed an Option and Joint Venture Agreement with
Aldershot Resources Ltd. (ALZ.H – TMX NEX) ("Aldershot") and has
initiated exploration work on the Haultain Gold Discovery. Under
the agreement, Aldershot can earn
an initial 51% interest and up to a 75% interest in the Company's
Gowganda Gold project (the Property) 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 major faulting discovered by Transition in
2010. Under the partnership with Aldershot, the Company has initiated programs
of exploration work that will include 2,000 metres of diamond
drilling to further evaluate gold targets identified on the
property.
Company CEO and president, Scott
McLean commented, "We view the Haultain Gold zone as an
important discovery and we are looking forward to aggressively
advancing this project with Aldershot as partner. "
To earn a 51% interest in the Property, Aldershot has committed to funding
$400,000 worth of exploration on
property in year one and must incur cumulative work expenditures
totaling $2.0 million by the third
anniversary of the agreement. In addition, Aldershot must issue 1,500,000 common shares
to Transition on signing, and provide an additional $450,000 worth of Aldershot shares to Transition by the second
anniversary date, subject to exchange approvals to earn its initial
interest. During the course of the initial stage of the Option,
Transition has agreed to serve as program operator, dedicating its
team and expertise to overseeing work programs funded by
Aldershot. Upon earning an initial
51% interest, Aldershot may opt to
acquire an additional 24% interest in the Claims (for a total of
75%) by committing to completing a feasibility study. Upon
Aldershot 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.
About the Gowganda Gold Project
The project consists of mining claims totaling approximately
3,520 hectares centrally located about Hwy 560 adjacent to the
unorganized municipality of Gowganda
Ontario in Nicol, Haultain, Milner, and Van Hise Townships,
Larder Lake Mining Division. The project is focused on Archean
greenstone overlain by Proterozoic sediments of the Cobalt
Embayment located south of the Round-Lake Batholith in the
south-western part of the prolific Abitibi greenstone belt. A short
animated video that introduced Aldershot and the Haultain project may be
viewed at: http://iresourcemedia.com/companies/aldershot/
Transition discovered the Haultain gold zone in 2010 and has
since completed Induced Polarization (IP) geophysics, soil
surveying, mapping, 10 mechanically stripped and channel sampled
trenches and completed 21 drill holes totaling 2,258m. The
property hosts widespread visible gold mineralization hosted by
stockwork veining in altered syenite with assays 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 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
additional soil sampling and detailed mapping to assist drill
targeting.
In conjunction with the transaction, Aldershot has prepared an updated 43-101
technical report for the project which shall be filed on their
behalf on Sedar in the coming days.
Transition further discloses that it has entered into two
separate Memorandum of Understanding ("MOU") agreements with local
First Nation communities. The MOUs define working relationships and
establish protocols for engagement with each community. In
conjunction with one MOU, Transition has agreed to issue 50,000
units to each consisting of a Transition common share and a common
share purchase warrant exercisable for 3 years following the
earlier of the date of issue or upon termination of the MOU at a
price reflecting the 20 day volume weighted average trading price
(VWAP) at the time of issue plus 25%. As part of the Option and
Joint Venture Agreement, Aldershot
has agreed to abide by the terms of the MOU and will reimburse cash
to Transition for the issuance of units to the First
Nation.
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, British
Columbia, Minnesota 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.