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.
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.
For further information: Further information is available at www.transitionmetalscorp.com or by contacting: Scott McLean, President and CEO, Transition Metals Corp., Tel: (705) 669-0590