SUDBURY, ON, Aug. 28, 2018 /CNW/ - Transition Metals Corp
(TSX.V: XTM) ("Transition", "the Company") is pleased to announce
that the Company has signed a binding Letter of Intent with VaniCom
Limited ("VaniCom") of Perth,
Western Australia for the sale of
a 100% interest in the Dundonald Nickel Project located near
Iroquois Falls, Ontario (the
"Property").
The purchase terms include a payment of CDN$50,000 by VaniCom to the Company on signing
the Binding 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% Net
Smelter Return Royalty on any future production from the Property.
The Letter of Intent also includes a requirement that VaniCom incur
expenditures of at least CDN$750,000
on exploration and development on the Property over a 36-month
period.
Transition CEO Scott McLean
commented, "The sale of the Dundonald property is in line with the
Company business model that brings value to the shareholders while
avoiding shareholder equity dilution and preserving exposure to
production upside by holding a royalty. We look forward to
working with Vanicom to advance the project"
The Property is comprised of mining leases, patents and staked
claims totaling 950 Ha and hosts high grade
nickel-copper-cobalt-PGM mineralization along a 9.5km strike length
of highly prospective komatiitc volcanic flows. The property, which
is adjacent to the past producing Alexo
Nickel Mine, hosts a historic resource estimate of 116,000
tonnes grading 3.16% nickel carrying elevated Cobalt and PGM's
based on approximately 75,000 metres of drilling1. In
addition, Copper-Zinc, VMS potential exists on the property that is
exemplified by the occurrence of the Terminus Zone (Notable drill
intersection; 1.37% Cu, 7.53% Zn, 0.13% Co and 1.1 g/t Au over
10.13m)1.
1Technical Report on the Dundonald Project,
Dundonald & Clergue Townships, Porcupine Mining Division,
Ontario for First Nickel
Inc.; G.A. Harron, P. Eng, January 30,
2009. The qualified person has not done sufficient work to
classify the historical estimate as current mineral
resources. The resource estimate and cited drill
intersections are historical in nature and Transition cannot
confirm the estimate hence they should not be relied upon.
Qualified Person
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.
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.
