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Project Generator Transition Metals grants option on Island Copper Project

Jan 5, 2021

Transition Metals Corp has announced that the company has granted an option on its Island Copper project to Rich Copper Exploration Corp, a private corporation. The property consists of 5 mining claims covering 62 hectares in Awares Township located approximately 20 kilometres northeast of Sault Ste. Marie.

Under the terms of the Agreement, Rich Cu can vest a 100% interest in the Property by providing Transition with $150,000 cash over 3 years ($25,000 on signing), 500,000 shares on signing and an additional $475,000 worth of shares over the following 3 years as well as completion of $750,000 in exploration expenditures. Transition will receive a 2.5% Net Smelter Return royalty on any future production from the Property and within a 5 kilometre area of interest. In addition, Transition is entitled to milestone payments of $1,000,000 upon Rich Cu or its assigns completing a Feasibility Study and an additional payment of $5,000,000 within 12 months of commencement of Commercial Production. 

Transition CEO Scott McLean commented, "The Island Copper transaction 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 Rich Cu to advance this promising project"

The Property has been worked by various operators since 1965 including the completion of 37 drill holes totaling 2,740 metres to a maximum depth of 137 metres. The best historical intersection reported is from a diamond drill hole completed in 1965 by Kennco Exploration that returned 11.59 metres grading 3.4% Cu and 0.9 g/t Au from 2.16 metres1. Recent sampling completed by Transition Metals at the main Copper showing returned values of up to 9.00% Cu and 7.0 /t Au from massive chalcopyrite veins (see Company news release of September 5, 2018).

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