Business
Transition Sells Portfolio of Royalty Interests to Nova Royalties for $1,000,000 Million Cash and 525,000 Shares
Sudbury, Ontario--(Newsfile Corp. - September 8, 2020) - Transition Metals Corp (TSXV: XTM) ("...
About this update from Transition Metals Corp.
[{"type":"text","content":"Transition Sells Portfolio of Royalty Interests to Nova Royalties for $1,000,000 Million Cash and 525,000 SharesSudbury, Ontario--(Newsfile Corp. - September 8, 2020) - Transition Metals Corp (TSXV: XTM) (\"Transition\", \"the Company\") reports that the Company has entered into an agreement to sell a portion of its portfolio of royalties to Nova Royalties Corp. (Nova) for $1,072,500 in cash and 525,000 shares of Nova. In addition, the agreement includes a potential $2.0 million in additional milestone payments. The sale of royalties to Nova includes:One half of the Company's 2.5% net smelter return royalty (\"NSR\") on the Dundonald project (sold to Class 1 Nickel and Technology Limited in 2018);One half of the Company's 2.0% NSR on the West Matachewan and Elephant Head projects (sold to Canadian Gold Miner Corp in 2016); andOne half of Transition's 2.0% NSR interest in the Janice Lake project (optioned to Forum Energy Metals Corp in 2018).In addition, the Company will assign a 1.0% NSR on five of its 100% owned exploration stage projects (Maude Lake, Homathko, Saturday Night, Bancroft, and Wollaston Copper). In total, the royalty sale involves NSR interests held by Transition on a group of projects representing approximately only 600 of 2,000 square kilometres for which the Company retains ownership interest. \"Our share price does not fully reflect the value of the our combined investments and numerous property holdings,\" commented Company president and CEO Scott McLean, \"By selling this royalty package to Nova now, we unlock some of the value we created while maintaining upside exposure to the projects. The proceeds will allow us to more aggressively accelerate our project generator business model by acquiring and developing additional high quality assets. Our goal is to further increase shareholder value and drive stock price growth in the near to mid-term during this bull market metals cycle.\" The Company is entitled to additional milestone payments with respect to the Janice Lake NSR upon the following: $1,000,000 in cash upon the completion of a bankable feasibility study or the commencement of commercial production; $1,000,000 in shares of Nova if the projected annual production is at least 30,000 tonnes of contained copper for a minimum of 10 years.If Nova is not publicly listed by December 31, 2020, a penalty ...