Sudbury’s Transition Metals announced it has acquired all the exploration and development assets of the former First Nickel.
In a transaction that closed Jan. 25, Transition, which bills itself as a “project generator,” picked up 1,100 hectares of leased and patented mining and surface rights property and 7,591 hectares of mining claims, including the Lockerby East and West Graham deposit located on the south range of the Sudbury basin.
The properties were purchased through an asset purchase agreement between Transition Metals and the court-appointed receiver of First Nickel.
Transition Metals agreed to pay $100,000 cash and 980,392 common shares of the company at a price per share of $0.102.
The Sudbury properties are not associated with the First Nickel’s former flagship Lockerby Mine, which is currently in the process of being closed by the Ontario government.
First Nickel entered receivership last Aug. 20 after slashing its workforce earlier in the year in an attempt to restructure its operations at the mine, followed by a decision to halt development of an underground ramp in June.
Also in the transaction are base metal properties located in the Sudbury and Timmins areas.
"We are very excited about the transaction and in particular the low cost acquisition of nickel resources associated with the Lockerby East and West Graham Properties,” said company CEO-president Scott McLean in a press release.
“In reviewing the opportunity, our exploration team quickly recognized the significant potential for Ni-Cu-PGM mineralization on unexplored portions of the (Sudbury Igneous Complex) basal contact and footwall of the property, which are not subject to the Lockerby Mine closure plan.”
These properties are located eight kilometres northeast of the Aer-Kidd project, which belongs to the company’s subsidiary, Sudbury Platinum Corp.
Transition has a stable of 30 gold, copper, nickel and platinum projects primarily in Ontario, Nunavut and Saskatchewan.
