Project generator Transition Metals Corp. (XTM- TSX.V, "Transition", the "Company") is pleased to provide an update on its Aer Kidd nickel property, previously held by Transition's wholly-owned subsidiary HTX Minerals Corp. ("HTX") pursuant to an option agreement with Canickel Mining Company Ltd ("CaNickel"). The Company has incorporated a new subsidiary called Sudbury Platinum Corporation ("Sudbury Platinum") to pursue the Aer Kidd project. Given the amount of mineral exploration expenditures required to exercise the Aer Kidd option and the Company's project generator business model, the Company considers it in the best interest of the Company's shareholders to establish a new standalone corporate vehicle for the Aer Kidd project. Sudbury Platinum has also completed an initial non-brokered financing of $310,500 to fund initial exploration activities at the Aer Kidd project located in Sudbury Ontario.
Sudbury Platinum's primary focus will be to explore for nickel, copper and platinum group metals (Ni-Cu-PGM) in the Sudbury District with a focus on the Aer Kidd property. The option for the Aer Kidd project was assigned to Sudbury Platinum by HTX in October in exchange for stock and other considerations. The terms of the underlying option agreement entitles Sudbury Platinum to earn a 50% or 70% interest in the Aer Kidd property. Sudbury Platinum also purchased the Owen Nickel property, located near Espanola Ontario from HTX in exchange for shares. As a result of the two transactions, HTX has been issued a total of 15,000,000 commons shares in Sudbury Platinum and Transition has entered into a multi-year operating agreement with Sudbury Platinum to provide exploration services during the term of the underlying option.
"We view Sudbury as one of the world's premiere mining camps with remarkable opportunities for discovery of worldclass Ni-Cu-PGM ore." says CEO Scott McLean. "The Aer Kidd project is an outstanding brownfields opportunity exceptionally well positioned between Vale's Totten Mine and KGHM's Victoria mine development."
The initial financing for Sudbury Platinum consisted of the sale of 3,105,000 units.. Each unit was issued at $0.10 consisting of a common share and a common share purchase warrant exercisable at $0.20 for a 36 month period following the November 6, 2013 closing date for proceeds of $310,500. After giving effect to the financing, HTX holds approximately 83% of the common shares of Sudbury Platinum.
