- Transition Metals Corp (XTM) has signed an option agreement with Aurum Lake Mining Corporation
- The agreement is for the exercise of an option to acquire some mineral claims called the Homathko Gold Project, located in British Columbia
- Aurum is 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 Transition when it begins commercial production
- Transition Metals Corp. is a Canadian-based, multi-commodity explorer that specializes in converting new exploration ideas into discoveries.
- Transition Metals Corp. opened trading at $0.075 per share
Transition Metals Corp (XTM) has signed an option agreement with Aurum Lake Mining Corporation.
The agreement is for the exercise of an option to obtain a 100-per-cent interest in the Homathko Gold Project, located in the Cariboo Region 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 Transition when it begins commercial production.
When it earns its interest, Transition will be granted a net smelter return royalty of 2.0 per cent on all mineral production on the property. Portions of the property are also subject to an underlying net smelter royalty of 1.0 per cent payable to Nova Royalty Corp.
The Homathko Property, which is located about 57 kilometres south of the community of Tatla Lake and 222 kilometres west of Williams Lake, consists of 35 contiguous mineral claims covering 30,971 hectares.
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 of gold (Au) per tonne (g/t Au).
Work completed by Transition has identified a larger, potentially high-grade lode gold system that extends for 1.5 km along strike length.
Aurum Lake Mining Corporation is a capital pool company under the policies of the TSX Venture Exchange, and the option agreement with the optionor will constitute its “qualifying transaction” in accordance with Exchange Policy 2.4 – Capital Pool Companies.
When it completes this transaction, Aurum expects to be listed as a Tier 2 Mining Issuer on the Exchange.
Transition Metals Corp. is a Canadian-based, multi-commodity explorer that specializes in converting new exploration ideas into discoveries.
Transition Metals Corp. opened trading at $0.075 per share.