Transition Metals (XTM.V) has entered into an option agreement to acquire full ownership of the Pike Warden gold-silver-copper project in Canada’s Yukon Territory. The project is located approximately 65 kilometers southwest of Whitehorse and consists of 185 contiguous mining claims for a total surface area of approximately 37 square kilometers.
Based on the historical exploration results as well as on the recent discovery of high grade polymetallic mineralized zones, Transition Metals thinks it may have its hands on a large epithermal porphyry system. Select grab samples have indeed confirmed the presence of widespread mineralization over a 30 square kilometer surface area. Transition Metals plans to immediately put an exploration plan together which may even already include an RC drill program on the main showings.
The option agreement is very straightforward: Transition has committed to making total cash payments of C$150,000 while also issuing 1M shares to the vendor. Additionally, Transition has to complete C$1M in exploration expenditures within a four year time frame which shouldn’t be an issue considering Transition is already planning on a drill program. Once Transition has indeed completed all of this, it will issue a 1% NSR to the vendor and commit to a C$1.5M milestone payment payable within six months from the start of commercial production.
Disclosure: The author currently has no position in Transition Metals. Please read our disclaimer.
