Transition Metals and 1930153 ON Ltd Sell the Fostung Tungsten Property for US$5,000,000 Cash
Rhea-AI Summary
Transition Metals (TSXV: XTM) and 1930153 ON Ltd. have jointly sold their Fostung Tungsten Property to UAMY Cobalt Corporation, a subsidiary of United States Antimony Corporation (NYSE: UAMY), for US$5 million in cash (approximately C$7.0 million). The transaction includes a 0.5% Net Smelter Return (NSR) royalty.
Each selling party will receive US$2.5 million and 0.25% NSR for their respective 50% interests. The deal represents a strategic move in the critical minerals sector, particularly significant as China currently controls over 80% of global tungsten production.
Positive
- Substantial cash proceeds of US$5 million (C$7.0 million) from sale of single asset
- Retention of 0.5% NSR royalty providing future revenue potential
- Non-dilutive funding to advance other key projects like Pike Warden and Saturday Night
- Sale of just one of 18 projects demonstrates portfolio value
Negative
- None.
News Market Reaction – TNTMF
In the trading session that priced this news, TNTMF gained 74.29%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Sudbury, Ontario--(Newsfile Corp. - June 27, 2025) - Transition Metals Corp. (TSXV: XTM) ("Transition" or "the Company"), together with 1930153 ON Ltd. ("1930153 ON"), a private Ontario corporation, collectively the "Vending Parties", are pleased to announce the joint sale of their respective
Transaction Summary
Under the terms of the Agreement dated June 26th, 2025, UAMY has acquired a
Scott McLean, CEO of Transition Metals, commented: "We are pleased to transact with UAMY, a leading strategic critical metals company which is well positioned to advance Fostung for the benefit of stakeholders, including the nearby communities of Espanola and Sudbury. The proceeds from the sale of just one of our 18 projects highlights the depth of our portfolio, which includes multiple mineral exploration projects, royalties, milestone payments, and marketable securities. Furthermore, this transaction shows the benefit of our ability to utilize our portfolio to generate non dilutive cash to help us advance key projects like Pike Warden and Saturday Night."
Mark Trevisiol, P.Eng., President of 1930153 Ontario Ltd., commented: "China controls over
About the Fostung Property
The Fostung Property consists of 50 mining claims covering approximately 1,114 hectares. The Property lies within Foster Township in the Sudbury Mining District of Ontario, Canada, approximately 8 kilometres southeast of the town of Espanola. An all-weather gravel road provides excellent access from the property to Espanola, where Trans-Canada Highway #17 is located. The city of Sudbury is located approximately 70 kilometres to the northeast.
The Property hosts a near surface historic inferred mineral resource, estimated in 2007 by SRK Consulting, of 12.4 million tonnes grading
¹ Source: NI 43-101 Technical Report on Resources, Golden Predator Mines Inc., Fostung Project, Foster Township, Ontario, Canada. Prepared by SRK Consulting, November 30, 2007.
The Company advises that a Qualified Person has not completed sufficient work to classify the historical estimate as a current mineral resource or mineral reserve, and the Company is not treating the historical estimate as such. The Company has not independently verified the sample data or grades presented in the historical estimate and considers them to be historical in nature. Furthermore, Transition has not undertaken the necessary work to verify or upgrade the historical estimate and has not assessed the amount of work required to do so. The Company is also unaware of any more recent mineral resource estimates; however, Transition is aware that UAMY plans to commission an updated technical report, compliant with SEC SK 1300 regulations, which may include results from recent exploration programs conducted on the Property by the Vending Parties.
A portion of the Property is subject to an underlying
Qualified Person
The scientific and technical content of this release has been reviewed and approved by Mr. Benjamin Williams, P.Geo. (PGO), Senior Geologist at Transition Metals Corp. and a Qualified Person as defined by NI 43-101. In addition, the scientific and technical content of this release has also been reviewed and approved by Mr. Mark Trevisiol, P.Eng. (PEO), President of 1930153 Ontario Ltd, and a Qualified Person as defined by NI-43-101.
About Transition Metals Corp.
Transition Metals Corp. (TSXV: XTM) is a Canadian-based, multi-commodity explorer. Its award-winning team of geoscientists has extensive exploration experience which actively develops and tests new ideas for discovering mineralization in places that others have not looked, often allowing the Company to acquire properties inexpensively. Joint venture partners earn an interest in the projects by funding a portion of higher-risk drilling and exploration, allowing Transition to conserve capital and minimize shareholder's equity dilution.
About 1930153 ON Ltd.
1930153 ON Ltd. is a private Sudbury-based company with interests in Northern Ontario properties, that is focused on advancing mineral projects in Ontario in part by applying modern extraction and processing technologies.
About United States Antimony Corporation
United States Antimony Corporation ("USAC") and its subsidiaries in the U.S., Mexico, and Canada sell antimony, zeolite, and precious metals primarily in the U.S. and Canada. USAC processes third party ore primarily into antimony oxide, antimony metal, antimony trisulfide, and precious metals at its facilities located in Montana and Mexico. Antimony oxide is used to form a flame-retardant system for plastics, rubber, fiberglass, textile goods, paints, coatings, and paper, as a color fastener in paint, and as a phosphorescent agent in fluorescent light bulbs. Antimony metal is used in bearings, storage batteries, and ordnance. Antimony trisulfide is used as a primer in ammunition. USAC also recovers precious metals, primarily gold and silver, at its Montana facility from third party ore. At its Bear River Zeolite ("BRZ") facility located in Idaho, the Company mines and processes zeolite, a group of industrial minerals used in water filtration, sewage treatment, nuclear waste and other environmental cleanup, odor control, gas separation, animal nutrition, soil amendment and fertilizer, and other miscellaneous applications. USAC has acquired mining claims and leases located in Alaska and Ontario, Canada and leased a metals concentration facility in Montana in 2024 that could expand its operations as well as its product offerings.
Cautionary Note on Forward-Looking Information
Except for statements of historical fact contained herein, the information in this news 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Further information is available at www.transitionmetalscorp.com or by contacting:
Scott McLean
President and CEO
Transition Metals Corp.
Tel: (705) 669-1777
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/257004