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Transition Metals Enters into Binding Letter of Intent for the Sale of Its Mongowin Gold Property, Ontario
Sudbury, Ontario--(Newsfile Corp. - June 14, 2021) - Transition Metals Corp (TSXV: XTM) ("Tran...
About this update from Transition Metals Corp.
[{"type":"text","content":"Transition Metals Enters into Binding Letter of Intent for the Sale of Its Mongowin Gold Property, OntarioSudbury, Ontario--(Newsfile Corp. - June 14, 2021) - Transition Metals Corp (TSXV: XTM) (\"Transition\", the \"Company\") is pleased to announce that the Company has entered into a binding letter of intent (\"LOI\") entitling McFarlane Lake Mining Incorporated (\"MFM\") to purchase a 100% interest in 122 mining claims and 3 patents covering 2,605 hectares in Mongowin Township approximately 20 kilometres South of Espanola, Ontario. The property is comprised of 112 staked claims, three mining patents and 10 purchased mining claims for a total of 2,605 hectares (the \"Property\"). The 10 purchased mining claims have an underlying royalty agreement that will be assigned to MFM. The underlying royalty agreement grants the previous owner a 1% net smelter return royalty (\"NSR\") of which Transition retains the right to purchase 0.5% NSR at any time for $600,000. Under the terms of the LOI, MFM has paid XTM $15,000 for a 5 month period of exclusivity to assign the Property to a public vehicle (\"Pubco\") and complete due diligence. Upon completion of the period of exclusivity, XTM will receive an additional payment of $85,000 and $500,000 of common stock in Pubco prior to transferring the Property. In addition, XTM will be granted a 1.5% net smelter return royalty (NSR) from commercial production from the Property, a $2,500,000 milestone payment upon commencement of commercial production and non-refundable advanced royalty payments of $25,000 per year following the 5th year of the execution of a Definitive Agreement for up to 10 years following the date of the agreement.Transition CEO Scott McLean commented, \"We have had interest in this area for a number of years and have been able to consolidate a large land package around 3 historical high grade gold mines; Fox Lake, Majestic and the McMillan Mines. MFM has been successful securing an option to purchase a 100% interest in the historic MacMillan Gold Mine from Canadian Star Minerals Ltd. which is reported to have produced 60,000 tonnes grading 0.18 oz per tonne between 1934 and 19371. Historical exploration was focused only on near surface zones of high-grade quartz veins but did not consider compelling evidence that the known zones may only be a small portion of a much larger s...