Transition Metals Corp (TSX-V:XTM) told investors it has entered into an option agreement that will see Aurum Lake Mining Corporation obtaining a 100% interest in its rights to certain mineral claims known as the Homathko gold project in British Columbia’s Cariboo Region.
The Sudbury, Ontario-based multi-commodity project generator said Aurum paid it $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 million lump sum payment to Transition Metals upon the commencement of commercial production.
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Upon earning its interest, Transition said it will be granted a net smelter return royalty of 2% on all mineral production on the Homathko property. Portions of the property are also subject to an underlying net smelter royalty of 1% payable to Nova Royalty Corp, it added.
The Homathko property, which is located, approximately 57 kilometres (km) south of the community of Tatla Lake and 222 km west of Williams Lake, is comprised of 35 contiguous mineral claims, covering 30,971 hectares.
Geologically the property lies near the contact of the eastern edge of the Coast Plutonic Suite and is believed to be largely underlain by Jurassic-aged volcanic and intrusive rocks of the Stikine Terrane. 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 per tonne (g/t) gold (Au).
Transition said the work it has completed has identified a larger, potentially high-grade lode gold system that extends for 1.5 km along strike length. It noted that mineralization at Homathko is hosted within quartz-carbonate veins developed within and near the margins of a shear-bounded, altered quartz-feldspar porphyry sill.
The company said assays returned grab samples up to 87 g/t Au2 and its geologists interpret that the environment for mineralization on the property appears consistent with that of a mesothermal lode gold deposit which bears many similarities to similar deposits occurring elsewhere in the Stikine belt including the Pioneer/Bralorne District and the Elk Gold Mine.
Engagement of investor relations consultant
Transition also announced it has entered into a consulting agreement with Raven Waschilowski, also known as Ray Lagace, to carry out certain investor relations services.
Under the agreement, it said Waschilowski will assist it in continuing dialogue with potential investors and will receive compensation of $3,750 per month.
The Lagace Agreement is subject to TSX Venture Exchange acceptance and is for a one-year term commencing on February 6, 2023, and ending on February 6, 2024, the company added.
Transition Metals is a Canadian-based, multi-commodity explorer that specializes in converting new exploration ideas into discoveries. Joint venture partners earn an interest in its projects by funding a portion of higher-risk drilling and exploration, allowing Transition to conserve capital and minimize shareholder's equity dilution.
Contact the author at stephen.gunnion@proactiveinvestors.com