SUDBURY, ON, June 21, 2017 /CNW/ - Transition Metals Corp (XTM
– TSX.V) ("Transition", "the Company") is pleased to announce the
signing of a Definitive Option Agreement with North American
Palladium ('NAP') on the Sunday Lake Project. The property is
currently held by Joint Venture Partners, Transition Metals Corp
within its wholly-owned subsidiary, HTX Minerals Corp and Impala
Platinum Holdings Limited (Implats). Under the terms of the
agreement, North American Palladium has the right to acquire a 75%
ownership in the Sunday Lake Project by completing work commitments
totaling $4.5M and making cash
payments of $3.5M over a five year
period.
The property occurs within the emerging Mid-Continental Rift
(MCR) base and precious metal camp. Recent discoveries in the
district include Panoramic Resources', Thunder Bay North Project
(Indicated Resources 8.46Mt @ 2.09g/t Pt+Pd+Au or PGM1)
in Ontario, Lundin Mining's, Eagle
Mine (Reserves 3.72Mt @ 2.50% Ni, 2.20% Cu2) in
Michigan and Rio Tinto's Tamarack
Deposit (Indicated Resource 3.75Mt @ 1.81% Ni, 1.00% Cu, 0.85g/t
PGM; Inferred Resource 3.38Mt @ 1.63% Ni, 0.94% Cu, 0.67g/t
PGM3) in Minnesota. The Sunday Lake Project is
geologically similar to these important deposits for which XTM has
a 25% free carried interest until the completion of Feasibility
Study.
Commenting on the agreement, company CEO and President
Scott McLean stated "We are very
pleased with the signing of a Definitive Option Agreement with NAP
on our Sunday Lake Project. We continue to view the Sunday
Lake Project as a key, high-quality project and we are excited to
have NAP as a partner. NAP will focus on defining mineral
resources at Sunday Lake which is 90 km trucking distance from
their Lac des Ilse Mine/Mill Complex."
Option Agreement Terms
The Option agreement provides NAP with the exclusive right to
acquire a 75% ownership in the Sunday Lake Project by completing
the following exploration stages (see North American Palladium
Press Release dated June 20, 2017 for
details):
Stage 1: NAP may acquire a 51% controlling
interest in the property by completing $1.5M of exploration expenditures and making cash
payments of $75,000 to XTM and
$675,000 to Implats within a two year
period.
Stage 2: NAP may increase its interest from
51% to 65% by completing an additional $2.5M of exploration expenditures and making
further cash payments of $125,000 to
XTM and $1.125M to Implats within a
two year period.
Stage 3: NAP may further increase its
interest from 65% to 75% by completing an additional $0.5M of exploration expenditures and making
final cash payments of $150,000 to
XTM and $1.35M to Implats within a
one year period.
About the Sunday Lake Property
The Sunday Lake PGM-Cu-Ni Project is located 25 km north of
Thunder Bay in Jacques Township
and approximately 95 km south of NAP's producing Lac Des Iles Mine
(Figure 1) that has reported reserves (Proven and Probable) of
38.5Mt @ 2.25g/t Pd4 as well as a fully integrated mill
complex capable of processing 15,000 tonnes per day. The Sunday
Lake Property covers a 3.5 km diameter circular reversely-polarized
magnetic anomaly associated with a large buried mafic-ultramafic
intrusion interpreted to be Proterozoic in age and related to the
MCR. In November of 2015 the company reported the best intersection
to date on the property from SL-15-013 that intersected 42.9m
grading 3.43g/t combined PGMs (Pt+Pd+Au) including 10.10m grading
5.61g/t PGM5 (interpreted to be close to true
width).
¹ Resource reported by Panoramic Resources, Thunder Bay North
deposit: 2011 JORC compliant mineral resources estimate prepared by
AMEC Americas Ltd.
² Lundin Mining – Reserves and Resources June 30, 2016.
http://www.lundinmining.com/s/Reserves.asp
3 Resource reported by Talon Resources,
Tamarack North Technical Report: 2014 NI 43-101mineral resource
estimate prepared by Golder Associates Ltd.
www.sedar.com
4 North American Palladium Press Release dated
May 29, 2017
5 Transition Metals Corp press release dated
November 16, 2015
Qualified Person
The technical elements of this press release have been approved
by Mr. Grant Mourre, 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.