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Transition Metals Options Homathko Property to Aurum Lake Mining Corp. and Engages IR Services
Sudbury, Ontario--(Newsfile Corp. - February 10, 2023) - Transition Metals Corp (TSXV: XTM) ("Tra...
About this update from Transition Metals Corp.
[{"type":"text","content":"Transition Metals Options Homathko Property to Aurum Lake Mining Corp. and Engages IR ServicesSudbury, Ontario--(Newsfile Corp. - February 10, 2023) - Transition Metals Corp (TSXV: XTM) (\"Transition\", \"the Company\") is pleased to announce that it has entered into an Option Agreement with Aurum Lake Mining Corporation (\"Aurum\") to exercise an option to obtain 100% interest of the Company's rights to certain mineral claims known as the Homathko Gold Project (the \"Property\"), located in the Cariboo Region of the Province of British Columbia.In consideration of the grant of the Option, Aurum paid the Company $20,000 on signing the Agreement and will be required to pay an additional $450,000 over two years. Aurum is also required to incur work expenditures on the Property totalling $500,000 over the next two years, and make a one-time $5,000,000 lump sum payment to the Company upon the commencement of commercial production. Upon earning its interest, Transition will be granted a net smelter return royalty of 2.0% on all mineral production on the Property. Portions of the property are also subject to an underlying net smelter royalty of 1.0% payable to Nova Royalty Corp. (see Company news release dated: October 5, 2020).The Homathko Property, which is located, approximately 57 kilometres south of the community of Tatla Lake and 222 kilometres west of Williams Lake is comprised of 35 contiguous mineral claims, covering 30,971 hectares. Geologically the Property lies near the contact of the eastern edge of the Coast Plutonic Suite and is believed to be largely underlain by Jurassic-aged volcanic and intrusive rocks of the Stikine Terrane. Mineralization on the Property was first identified by Falconbridge Limited in 1966 where grab and trench samples were reported to return up to 384 grams gold (Au) per tonne (g/t Au)¹. Work completed by Transition has identified a larger, potentially high-grade lode gold system that extends for 1.5 km along strike length. Mineralization at Homathko is hosted within quartz-carbonate veins developed within and near the margins of a shear bounded, altered quartz-feldspar porphyry sill. Company assays returned grab samples up to 87 g/t Au2 (Note to reader: samples collected by Transition Metals are grab samples and may not necessarily be representative of the mineralization hosted across the p...