NewsProject Generator Transition Metals Sells Its Mongowin Project for Cash, Shares and A, NSR Royalty 02/01/2022 08:31 AM ET
Sudbury, Ontario--(Newsfile Corp. - February 1, 2022) - Transition Metals Corp (TSXV: XTM) ("Transition", the "Company") is pleased to announce that the Company has sold its 100% interest in the Mongowin project to McFarlane Lake Mining ("MFM"), a corporation that trades on the NEO Exchange under the symbol MFM. The property is located approximately 13 kilometres south of Espanola, Ontario and 70 kilometres southwest of Sudbury and is adjacent to MFM's past gold producing McMillan property. The Mongowin Township property is comprised of 122 mining and three patented claims, totaling 2,605 hectares (the "Property").
Pursuant to the purchase and sale agreement with MFM, Transition, received total consideration consisting of $145,000 cash, $500,000 worth of MFM stock and a 1.5% Net Smelter Return royalty (NSR) from any commercial production from the Property. Additionally, beginning on the fifth anniversary of the Purchase Agreement, MFM will pay Transition advanced royalty payments of $25,000 per year (in cash or common shares) to a maximum total of $250,000 (in cash or shares). Lastly, upon the commercial production of mineral products from the Property, Transition will be entitled to a one-time payment of $2,500,000.
Transition CEO Scott McLean commented, "The Mongowin transaction with MFM is another demonstration of the success of our Project Generator business model. Transition identified the opportunity, staked the property and confirmed the target potential. We have now been able to leverage this initial seed capital investment significantly while still preserving the upside potential through future milestone payments and a royalty. We look forward to working with McFarlane Lake Mining to advance the Property."
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