Sudbury, Ontario--(Newsfile Corp. - March 12, 2019) - Transition Metals Corp. (TSXV: XTM ) ("Transition" or "the Company"), is pleased to announce that it has executed an Option and Joint Venture Agreement with Battery Minerals Resources Limited ("Battery") whereby Battery can earn a up to an 80% interest in the Gowganda Gold project located 75 kilometres southwest of Kirkland Lake.
To earn a 60% interest, Battery must provide option payments totalling $600,000 over 3 years that includes a $75,000 payment upon execution of the Agreement and $25,000 that was received earlier by the Company upon execution of a binding term sheet. In addition, Battery must complete $3.4 million of exploration expenditures over 3 years including a commitment of $400,000 during the first year. Upon vesting a 60% interest, Battery may increase its interest to 80% by delivering a Feasibility Study within three years subject to certain time extension provisions. After earning its 60% or 80% interest in the Property as the case may be, a Joint Venture would be formed, with each party funding its proportionate share of future work programs or suffering dilution of interest.
Company CEO and President, Scott McLean commented, "We are pleased to have a new partnership with Battery Mineral Resources. As a project generator, Transition focuses on generating quality exploration projects and developing partnerships to advance them toward production. The Gowganda property is prospective for both Archean lode gold and Proterozoic cobalt deposits, which will be both targeted in the upcoming exploration program."
About the Gowganda Gold Project
The Project is located adjacent to the town of Gowganda, Ontario in Nicol, Haultain, and Van Hise townships, in the Larder Lake Mining District. Geologically, it hosts inliers of Archean greenstone south of the Round-Lake Batholith in the south-western part of the Abitibi greenstone belt but is partly overlain by Proterozoic sediments of the Cobalt Embayment.
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 (see Transition news release of September 8, 2011). Reported drill intercepts include 2.37 g/t over 7.06 metres, up to 82.5 g/t Au over 0.4 metres (see Transition Metals news release of December 1, 2011) and 1.63 g/t Au over 11.52m (see Transition Metals news release of April 6, 2017).
In addition to the prospective gold mineralization, cobalt-silver mineralization occurs across the property within the overlying Cobalt Embayment rocks. The Big Four showing includes a series of trenches, pits, and a 7.6 m deep shaft located on the Property. Samples collected by the Company from the waste dump included cobaltite-rich carbonate material returning up to 3.04% Co and 31.6 g/t Ag from grab samples (see Transition Metals news release of August 21, 2018).
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. All analytical work performed on samples was conducted at ALS-Chemex with sample preparation completed in Sudbury, Ontario and analyses completed in North Vancouver, B.C. The quality system used by ALS-Chemex complies with international standards ISO 9001:2000 and ISO 17025:2005.
About Transition Metals Corp
Transition Metals Corp (TSXV: XTM) 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, Nova Scotia and Saskatchewan.
About Battery Mineral Resources Limited
Battery Mineral Resources Limited ("BMR") is an Australian-based, multi-commodity resource company engaged in the exploration and development of minerals critical to the rechargeable battery market and energy storage sector in Canada, USA and South Korea. The Company has assembled a diversified portfolio of cobalt, lithium and graphite projects in stable geo-political jurisdictions, designed to supply growing market demand and deliver maximum leverage to the sector. Upon successful delineation of mineral resources, BMR intends to develop these projects and become a significant, low cost battery materials producer, and secure long-term strategic alliances with supply chain partners, battery manufacturers and other end users.
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.
Further information is available at www.transitionmetalscorp.com or by contacting:
President and CEO
Transition Metals Corp.
Tel: (705) 669-0590
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/43363