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SUDBURY, ON, Dec. 7, 2017 /CNW/ - Transition Metals Corp.
(XTM – TSX.V) ("Transition"
or "the Corporation") announces that it has closed
the first tranche of the previously announced non‑brokered private
placement financing of 4,071,031 units (the "Units") of
the Corporation at a price of $0.15
per Unit, for gross proceeds of $610,654.65. Each Unit consisted of one
common share of the Corporation (a "Common Share") and one
transferable share purchase warrant
(each, a "Warrant"). Each Warrant entitles
the holder to purchase one additional Common Share for a period of
24 months from closing at a price of $0.20. If, after the closing price of the
Common Shares on the TSX Venture Exchange (the "Exchange")
is higher than $0.30 for
20 consecutive trading days, based on the Volume Weighted
Average Price on daily closing, then on the date that is the 20th
consecutive trading day (the "Acceleration Trigger Date")
the expiry date of the Warrants will be accelerated to the date
that is 20 business days after the Acceleration Trigger Date
provided the Corporation, within three trading days of the
Acceleration Trigger Date, issues a news release announcing the
acceleration of the expiry date and delivers or sends by electronic
transmission a copy of such news release to the Warrant holders and
the finders.
The balance of the private placement will be completed upon the
receipt of Exchange approval. The private placement has been
over-subscribed and the Company anticipates that a total of
7,737,698 Units for gross proceeds of $1,160,654.70 will be issued under both
tranches.
A finder's fee was paid in connection with the placement to
finders, including Haywood Securities Inc. and Bally Capital
Advisors SA, that consisted of a cash fee in the aggregate amount
of $22,903.50, representing an
aggregate commission of 6% of the Units sold to investors
introduced by finders, and an aggregate of 152,690 non-transferable
share purchase warrants ("Compensation Warrants").
The Compensation Warrants permit the purchase of one Common
Share for a period of 24 months from closing at a price of
$0.15.
Proceeds from the private placement will be used for exploration
and working capital purposes. All securities issued in
connection with the private placement are subject to a four month
Canadian restricted resale period that expires, with respect to
resales in Canada, on April 8, 2018 and applicable securities
legislation hold periods outside of Canada.
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 Corporation 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 Corporation
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.
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.