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Transition Signs Binding Letter of Intent for the Sale of the Dundonald Nickel Project
Aug. 28, 2018 08:14AM PST
Base Metals Investing According to Transition, the purchase terms include a payment of C$50,000 by VaniCom to the company on signing the binding letter of intent with a further payment of C$100,000 to the company in cash on closing of the definitive purchase agreement.
Transition Metals (TSXV:XTM)has announced that the company has signed a binding letter of intent with VaniCom Limited, of Perth, Western Australia for the sale of a 100 percent interest in the Dundonald nickel project located near Iroquois Falls, Ontario.
As quoted in the press release:
The purchase terms include a payment of C$50,000 by VaniCom to the company on signing the binding letter of intent with a further payment of C$100,000 to the company in cash on closing of the definitive purchase agreement. In addition, VaniCom will issue the company shares with a value of C$350,000. Transition will receive a 2.5 percent net smelter return royalty on any future production from the property. The letter of intent also includes a requirement that VaniCom incur expenditures of at least C$750,000 on exploration and development on the property over a 36-month period.
CEO of Transition, Scott McLean said:
“The sale of the Dundonald property is in line with the company business model that brings value to the shareholders while avoiding shareholder equity dilution and preserving exposure to production upside by holding a royalty. We look forward to working with VaniCom to advance the project.”
Click here to read the full Transition Metals (TSXV:XTM) press release.
