The subsidiary was formed to acquire, advance and finance a large portfolio of high quality gold exploration projects situated along key breaks/faults in the southern Abitibi Greenstone Belt. Historical gold production within this region from camps including Timmins, Kirkland Lake , Val D’Or , and Malartic is estimated to exceed 170 million ounces from over 100 mines.
Canadian Gold Miner has entered into agreements with the Company to acquire a 100% interest in an approximate 60 square kilometer portfolio of early stage gold exploration projects located along the Cadillac Larder and Ridout structures in the Larder lake Mining District of Ontario . In addition, Canadian Gold Miner has entered into discussions and agreements with third parties to further expand and consolidate its land holdings in the southern Abitibi Greenstone Belt.
Company CEO and President Scott McLean explained: "Transition Metals Corp is taking advantage of the current down cycle in exploration by leveraging our investment and expertise in the southwest Abitibi to assemble a district scale portfolio of very prospective gold exploration projects in one of the world’s premier and politically stable gold mining districts.
"We think now is the right time to consolidate quality gold exploration projects in the Abitibi. The formation of Canadian Gold Miner is consistent with the Project Generator business model that Transition Metals Corp follows and is a proven mechanism to bring value to our shareholders while minimizing equity dilution in the parent."
Canadian Gold Miner has entered into a series of Purchase and Sale Agreements with Transition to acquire a 100% interest in five property groupings; West Matachewan , Jumping Moose, Elephant Head, Golden Elk and New Kirkland, totaling 5,952 hectares in consideration of 15 million common shares of Canadian Gold Miner, with this stock representing an initial 100% of the issued common stock.
In addition, Transition will retain a 2% Net Smelter Return Royalty (NSR) on all properties not already encumbered by underlying royalties, of which Canadian Gold Miner can buy back 1% by making a payment of $1.5 million to Transition at any point up until a production decision. Transition is also entitled to receive a milestone payment of $1.0 million for each transferred property upon a production decision.
The properties host a number of gold occurrences but have no defined reserves or resources. The locations of the properties included in the transactions are shown in Figure 1.
Canadian Gold Miner has also entered into a separate agreement with Kiska Metals Corporation (Kiska) to acquire a 100% interest in approximately 2,432 hectares located in Midlothian Township.
The Midlothian property hosts an undrilled gold occurrence named after prospector Ruth Bjorkman discovered in 2013 that has returned assay values from grab samples up to 12.7 kilos gold per tonne (as stated in news releases issued by Laurion Mineral Exploration Inc. dated July 23 and August 7, 2013 ) and is located adjacent to the west along the Cadillac Larder break from Canadian Gold Miner’s West Matachewan Property.
Subject to the terms of the Kiska Agreement, Canadian Gold Miner may earn a 100% beneficial interest in and to the property subject to underlying agreements with Laurion Minerals Inc. by issuing 1,000,000 shares of Canadian Gold Miner upon signing, with an additional $200,000 worth of additional shares or units (as the case may be) upon the earlier of the first anniversary of the agreement, or CGM completing a minimum $2M financing. Additionally, Kiska retains the right to receive a $2.5M milestone payment within 6 months of Commercial Production from the property.
