(XTM.V) Apr. 15, 2019 – Transition Metals Corp. has closed the purchase and sale agreement with Legendary Ore Mining Corporation whereby Legendary has purchased 100 percent interest in the Dundonald nickel-copper-platinum group metals project located near Iroquois Falls, Ontario. Legendary is a wholly owned subsidiary of Vanicom Limited, an Australian corporation. On August 28, 2018, the company announced that it had entered into a binding letter of intent with Vanicom to sell Dundonald.
The purchase terms include a payment of CDN$50,000 to the company on signing the letter of intent, with a further payment of CDN$100,000 to the company in cash on closing of the definitive purchase agreement. In addition, Vanicom will issue the company shares with a value of CDN$350,000. Transition will receive a 2.5 percent net smelter return royalty (NSR) on any future production from the property. Legendary must incur expenditures of at least CDN$750,000 on exploration and development on the property over a 36-month period or at its option, Transition can purchase back the property for one dollar.
“The project was purchased by the company as part of a bundle of three properties secured through the bankruptcy auction of First Nickel Inc. assets,” said Transition Metals CEO and president Scott McLean. “We have now been able to leverage two of the properties through sale arrangements while preserving access to the upside of the projects for our shareholders. We are hopeful that we will be able to further leverage the acquisitions with the sale of the third project going forward.”
Transition Metals 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 shareholders’ equity dilution. The company has an expanding portfolio that currently includes more than 25 gold, copper, nickel and platinum projects primarily in Ontario, Nova Scotia and Saskatchewan.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.