SUDBURY, ON, Jan. 25, 2016 /CNW/ - Transition Metals Corp. (XTM – TSX.V) ("TMC" or "the Company"), is pleased to announce the acquisition of all of the former exploration and development assets of First Nickel Inc. The purchase includes approximately 1,100 hectares of leased and patented mining and surface rights property and 7,591 hectares of mining claims, including projects with defined historical NI 43-101 nickel, copper and platinum group metal (PGM) resources located in the Sudbury and Timmins areas. The properties were purchased pursuant to an asset purchase agreement between the Company and the court-appointed Receiver of First Nickel Inc. (the "Receiver"). The Receiver has obtained a vesting order from the court and confirmation of closing is expected on or about January 25, 2016. The Company has agreed to pay consideration of $100,000 cash and 980,392 common shares of the Company at a price per share of $0.102, representing a value of $100,000 based on the 20 day trading weighted average share price.
Company CEO and president, Scott McLean commented, "We are very excited about the transaction and in particular the low cost acquisition of nickel resources associated with the Lockerby East and West Graham Properties. In reviewing the opportunity, our exploration team quickly recognized the significant potential for Ni-Cu-PGM mineralization on unexplored portions of the SIC basal contact and footwall of the property which are not subject to the Lockerby Mine closure plan. These properties come to the Company unencumbered by prior agreements, royalties or off-take arrangements and are located just 8 kilometres northeast of Company subsidiary, Sudbury Platinum Corporation's (SPC) flagship Aer-Kidd project."
About the Lockerby East and West Graham Property
The Property consists of approximately 390 hectares of freehold patents located on the south range of the Sudbury Igneous Complex (SIC), Sudbury, Ontario (Figure 1). It includes 100% of the Lockerby East and South Patents as well as a 70% interest in the West Graham Property (30% owned by Landore Resources Ltd.). In 2009, First Nickel disclosed a NI 43-101 Indicated Resource for the Conwest Zone at West Graham¹ totaling 8.55 million tonnes grading 0.45% Ni and 0.31% Cu, along with an Inferred Resource of 2.0 million tonnes grading 0.38% Ni, 0.30% Cu. Adjacent to this resource at depth lies the Lockerby East Zone² with 0.18 million tonnes grading 2.32% Ni and 0.78% Cu. The Company considers the cited public domain resource estimates to be historical in nature and cautions the reader that they may no longer be relevant. The acquisition of the Lockerby East and West Graham property does not include certain property associated with the Lockerby Mine site which is currently in the process of closure on behalf of the province of Ontario.
The Company has completed internal compilation and interpretation of historically available exploration data, including a detailed review historic borehole electromagnetic (BHEM) surveys in the vicinity of the Lockerby East and West Graham property and has identified very high conductivity target areas associated with the basal contact of the SIC in close proximity to intersections of anomalous mineralization. Four discreet, high conductivity areas (>5,000 seimen) coincident with anomalous mineralization and/or thick occurrences of basal contact SIC units, are identified from the data available from the sparsely distributed drillholes as shown in the long section provided in Figure 2.
The Company's Chief Geophysicist, Kevin Stevens commented that "BHEM responses observed in the historic data from the Lockerby East exploration drilling exhibit geophysical signatures consistent with the accumulations of massive sulphides in the Sudbury Igneous Complex. Part of an exploration plan going forward will include the BHEM resurvey of many of the historic exploration holes with modern tools. It will be most exciting to apply some modern geophysical tools to the property".
Subject to a Memorandum of Understanding between the Company and its 48% owned subsidiary, Sudbury Platinum Corporation, the Company is obligated to offer the Lockerby East and West Graham property to Sudbury Platinum for its acquisition cost.
About the Dundonald and Raglan Hills Properties
The Dundonald property near Timmins consists of approximately 950 hectares of freehold patents, mining leases and claims and hosts a small NI 43-101 resource totaling 116,000 tonnes grading 3.16% nickel³ which remains open at depth. The Company considers the disclosed resource estimate for Dundonald to be historical in nature and cautions the reader that it may no longer be relevant. Nickel mineralization is associated with a similar depositional setting to the recently discovered Grasset Nickel deposit in Quebec. The Dundonald property also hosts a copper-zinc occurrence known as the Terminus zone. Drilling by Falconbridge in 1990's on the Terminus Zone intersected a 10.1 m core length of 1.37% Cu, 7.53% Zn, 0.13% Co, 1.1 g/t Au, and 2.9 g/t Ag.
The Raglan Hills project consists of approximately 7,351 hectares of mining claims located in the Southern Mining district near Bancroft, Ontario. In 2009 First Nickel announced the discovery of a new zone of PGM mineralization at Raglan Hills upon intersecting 5.05 metres grading 0.762 g/t platinum and 1.216 g/t palladium.
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. The source and dates of the cited historical estimates and publically disclosed supporting technical reports are provided below in footnotes 1 through 3.
The reader should be cautioned that the mineral resources cited for the Lockerby East, West Graham and Dundonald properties are of a historical nature that have not been independently verified by the Company's Qualified Person. It is not known the extent to which the key assumptions, parameters and methods used to prepare the historical estimates are still relevant. The Qualified Person has not done sufficient work to classify the historical estimates as current mineral resources; and the Company is not treating the historical estimates as current mineral resources or mineral reserves.
¹ Technical Report on the West Graham Property Conwest Zone Resource Estimate, Graham Township, Ontario Canada prepared by Scott Wilson Roscoe Postle Associates Inc., January 15, 2009
² Technical Report on the 2009 Resource Estimate for the Depth, East and Upper West Zones, Lockerby Mine, Sudbury, Ontario, prepared by First Nickel Inc., February 23, 2009
³ Technical Report on the Dundonald Project, Dundonald and Clergue Townships, Porcupine Mining Division, Ontario for First Nickel Inc., G.A Haron, P/Eng, January 30, 2009
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.
Image with caption: "Figure 1: Location of Lockerby East and West Graham Property, on the SIC, near Sudbury Ontario. (CNW Group/Transition Metals Corp.)". Image available at: http://photos.newswire.ca/images/download/20160125_C2453_PHOTO_EN_605309.jpg
Image with caption: "Figure 2: Long Section of the Lockerby East & West Graham Properties (looking south) (CNW Group/Transition Metals Corp.)". Image available at: http://photos.newswire.ca/images/download/20160125_C2453_PHOTO_EN_605311.jpg
Renseignements: Further information is available at www.transitionmetalscorp.com or by contacting: Scott McLean, President and CEO, Transition Metals Corp., Tel: (705) 669-0590