Transition Metals options Pipestone property to Gowest Gold
April 27, 2011 - Transition Metals Corp. (XTM – TSX.V) - (Transition Metals, the Company) is pleased to announce that it has entered into an option and Joint Venture agreement ("JV") with Gowest Gold Ltd. ("Gowest") (TSX Venture: GWA, OTCBB: GWSAF, Frankfurt: 1GW) to explore the Company's 3,400 hectare (34 square kilometres) Pipestone Property in the Porcupine Mining District.
Company President & CEO, Scott McLean commented, "We are pleased to partner with Gowest to advance our combined interest in the exploration of these properties. The Gowest team has demonstrated that it is a capable operator in the Timmins camp and shares a similar vision regarding the opportunity for gold discovery along Pipestone fault."
The terms of the agreement have been disclosed in the subsequent notes section of the Company's recently filed Preliminary Prospectus (dated April 4, 2011), which provide an option to Gowest to acquire a 60% or 75% interest in claims owned by the Company in Wark, Prosser, Little, Gowan and Evelyn Townships, Porcupine Mining District (collectively referred to as the Pipestone Property), located near Timmins Ontario. Under the proposed terms, Gowest may earn a 60% in the Pipestone Property by making cash payments of $100,000, issuing 400,000 common shares of Gowest to the Company and incurring exploration expenditures of $1,000,000 by the 36 month anniversary of an agreement. Furthermore, Gowest retains the one time option upon vesting its 60% interest to increase its ownership to 75% by issuing an additional 150,000 common shares and incurring an additional $2,000,000 in exploration expenditures within 2 years.
About Transition Metals Corp
Transition Metals is a private Company focused on the identification, exploration and development of new gold opportunities in established and emerging gold districts in Canada. The Company currently owns or controls an interest in five early stage gold exploration properties in Ontario and British Columbia. The Company is committed to building shareholder value through the identification and development of new low cost, high quality exploration projects while minimizing shareholder dilution through funding partnerships and revenue generating opportunities.
About Gowest Gold Ltd
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit. Gowest is exploring additional gold targets on the Frankfield land package and continuing to evaluate acquisition targets in the vicinity of the Frankfield project area, part of the prolific Timmins, Ontario gold camp.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding estimated capital and operating costs, expected production timeline, benefits of updated development plans, foreign exchange assumptions and regulatory approvals. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, risks inherent in the mining industry, and regulatory risks. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Further information is available on the Company's website at: www.transitionmetalscorp.com or contact:
Scott Mclean President and CEO Transition Metals Corp. Tel: (705) 669-0590