TSX-V-listed Transition Metals has granted Rich Copper Exploration (Rich Cu) a purchase option over its Island Copper project, in Canada.
The property comprises five mining claims covering 62 ha in the Awares Township, in Ontario.
Under the terms of the agreement, Rich Cu can vest a 100% interest in the property by providing Transition with $150 000 in cash over three years, 500 000 shares on signing and an additional $475 000 worth of shares over the following three years.
Transition will receive a 2.5% net smelter return royalty on any future production from the property and within a 5 km area of interest.
In addition, Transition is entitled to milestone payments of $1-million upon Rich Cu or its assigns completing a feasibility study and an additional payment of $5-million within 12 months of the start of commercial production.
Transition CEO Scott McLean says the Island Copper transaction is another demonstration of the success of the company’s 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,” he comments.