Business
Transition Metals Options its Fostung Tungsten Property, Ontario
Sudbury, Ontario--(Newsfile Corp. - August 10, 2020) - Transition Metals Corp. (TSXV: XTM) ("Transition" or the "Company"), a Canadian-based multi-commodity pro
About this update from Transition Metals Corp.
[{"type":"text","content":" Sudbury, Ontario--(Newsfile Corp. - August 10, 2020) - Transition Metals Corp. (TSXV: XTM) (\"Transition\" or the \"Company\"), a Canadian-based multi-commodity project generator with a growing project portfolio, announces that it has executed an arms length Option and Joint Venture Agreement with 1930153 ON Ltd. (\"1930153 ON\") whereby 1930153 ON can earn up to an 100% interest in the Fostung Property located 8 kilometres southeast of Espanola, Ontario (see Company news release dated November 14, 2019). To earn a 50% interest, 1930153 ON must provide option payments totalling $110,000 over 4 years that includes a $15,000 payment upon execution of the Agreement. All option payments will be doubled if the project attracts at least $2,000,000 of financing during the 5 year Option Period. Additionally, 1930153 ON must complete $500,000 of exploration expenditures over 5 years. 1930153 ON may increase its interest in the Fostung Property to 80% by providing Transition with a further $500,000 cash and completing an additional $1,500,000 work over 2 years and further increase its interest to 100% by making an additional cash payment of $4,500,000 to the Company, subject to an NSR royalty. The Fostung mineralization is a skarn-type, tungsten deposit located within calcareous Huronian metasedimentary units. The property hosts a historic inferred mineral resource estimated in 2007 by SRK Consulting at 12.4 million tonnes, grading 0.213% WO3, with a cut-off grade of 0.125%. SRK based this estimate on data from a total of 44 diamond core drill holes and an aggregate of 9,185 metres of drill results. The Company discloses that a qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves, and the issuer is not treating the historical estimate as current mineral resources or mineral reserve. Furthermore, the Company has not independently verified the samples and grades presented in this release and consider them to be historic in nature. Transition CEO and President, Scott McLean commented, \"We are pleased to have formed a new partnership with 1930153 ON Ltd. to further advance this historic tungsten skarn resource. Tungsten is recognized as a critical metal by various countries including the USA and with the vast majority of global production coming from China, the Fo...