Transition Metals (TSX-V:XTM) has entered into an option agreement for its Maude Lake Ni-Cu-PGE Project in Ontario, Canada with Springbok Ventures.
The project hosts a high-tenor nickel-copper-cobalt-platinum group element magmatic sulphide system, with sampling returning up to 6.23% nickel, 0.72% copper, 0.085% cobalt, and 1.042 grams per tonne PGE.
Springbok is required to pay an aggregate of C$400,000 ($407,532) cash, issue common shares of Springbok, and incur an aggregate of C$3 million in expenditures, including:
- C$50,000 cash and issue 300,000 shares upon signing
- C$50,000 cash and issue C$550,000 worth of shares on the first anniversary of the agreement
- C$100,000 in cash and issue C$800,000 worth of shares on the second anniversary of the agreement
- C$200,000 in cash and issue C$1.5 million in shares on the third anniversary of the agreement
- Springbok must also incur a total of C$250,000 in exploration expenditures on the property prior to the first anniversary, a total of C$1 million prior to the second anniversary, and a total of C$3 million prior to the third anniversary of the agreement.
Springbok has also agreed to grant a 2% net smelter royalty on a portion of Maude Lake that is not under an existing royalty agreement and a 1% net smelter royalty on the portion that is already under an existing royalty agreement.
Springbok also reserves the right to purchase 0.75% of the unencumbered portion of the royalty for C$1.5 million and 0.5% of the encumbered portion for C$750,000, prior to commercial production.
Transition Metals CEO Scott McLean has also received the Professional Geoscientists of Ontario Award of Merit this month.
Transition Metals is a multi-commodity exploration company, focused on the acquisition, exploration, and development of mineral projects in Canada.
Write to Amy Rotman at Mining.com.au
Images: Transition Metals
