Transition Increases Its Exposure to Gold by Amending Its Gowganda Agreement with Battery Mineral Resources

Transition Metals Corp has amended its agreement with Battery Minerals Resources Corp. The amendment allows for BMR to focus its earn-in efforts on portions of the property under option from Transition considered to be more favourable for hosting silver and cobalt mineralization while facilitating the return of portions of the property considered more favourable for hosting gold to Transition. Under the amended agreement, the Company has waived the expenditure requirement for the second-year option and removed the requirement for Battery to expend funds on gold exploration going forward. The consideration received by Transition includes a $300,000 cash payment (paid), the return of its Gowganda Gold property totaling 968 hectares with two years of good standing and the assignment of the additional contiguous Battery claims totaling 4,011 hectares with one-year good standing (see Figure 1). The assigned Battery claims include a 1% net smelter return royalty held by Battery.

Transition CEO, Scott McLean commented, "We are pleased to achieve a constructive outcome for this project with Battery. We view our Gowganda property to be highly prospective for gold since first acquiring it in 2009. Combined with the addition of the new assigned property, the Company now has a strong foothold for gold exploration in the region. Our intention is to attract a new partner to advance the gold potential of our property, while allowing Battery to continue to focus on exploring the silver and cobalt potential under the current option arrangement."

 

Tags: Northern Ontario / Exploration / Gold / All Articles