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Transition Metals: Rio Tinto Exploration Canada Enters into a $30 Million Option Agreement to Explore Janice Lake
Sudbury, Ontario--(Newsfile Corp. - May 9, 2019) - Transition Metals Corp (TSXV: XTM) ("Transition", "the Company") is pleased to announce that Rio Tinto Explor
About this update from Transition Metals Corp.
[{"type":"text","content":" Sudbury, Ontario--(Newsfile Corp. - May 9, 2019) - Transition Metals Corp (TSXV: XTM) (\"Transition\", \"the Company\") is pleased to announce that Rio Tinto Exploration Canada (RTEC) has signed an Option Agreement with Company partner Forum Energy Metals Corp (Forum) to earn an interest in Janice Lake Property (the Property). Janice Lake is currently under option from the Company to Forum and is located approximately 55km southeast of Key Lake Saskatchewan (for full details see Forum news release dated May 9, 2019). Under the terms of the Forum - RTEC agreement, RTEC will commit to spending $3 Million within 18 months on the Property with the option to vest a 51% interest by spending $10 Million over 4 years. Upon vesting its interest, RTEC can, at its option, earn a further 29% interest (for a total 80% interest) by spending a further $20 million over 3 years. About the Transition Agreement with Forum Forum currently holds an option to earn 100% interest in the Janice Lake project by providing Transition with 8,000,000 shares of Forum (received), completing expenditures of $250,000 over 6 months (completed), and issuing cash option payments of $250,000 over 48 months ($50,000 received). Once vested, Transition will retain a 2.0% Net Smelter Return royalty (NSR) of which 0.75% NSR can be purchased for $1.5 million. Transition is furthermore entitled to a $1.0 million cash payment upon the completion of a Feasibility Study and an additional $5,000,000 cash payment within 12 months of achieving Commercial Production from the Property (See Transition news release of February 6, 2018). To facilitate the Forum - RTEC agreement, the Company has entered into a Consent Agreement with Forum and RTEC. Prior to execution of the agreement, Forum doubled the size of the Property by staking a further 19,312 ha (for a total of 38,250 Ha) covering the entire 52 km strike of the Wollaston Copperbelt to which the Company's royalty and milestone cash payments will apply. Commenting on the results, Company CEO and President Scott McLean, P.Geo. stated: \"We are very pleased that our partner Forum has secured a significant exploration arrangement with a quality major mining company like RTEC. The program planned by RTEC is robust and will advance Janice Lake in a way that has the potential to create value for our shareholders. Under the project ge...