Transition Metals Announces that Spinout Company SPC Nickel Has Closed a $7.82 Million Over-Subscribed Private Placement and Filed a Preliminary Prospectus for a Public Listing on TSX Venture Exchange
Transition Metals Announces that Spinout
Company SPC Nickel Has Closed a $7.82
Million Over-Subscribed Private Placement
and Filed a Preliminary Prospectus for a
Public Listing on TSX Venture Exchange
Sudbury, Ontario--(Newsfile Corp. - December 15, 2020) -
Transition Metals Corp.
(TSXV: XTM)
("Transition", "XTM", or the "Company") is pleased to announce that SPC Nickel Corp ("
SPC
"), formerly
Sudbury Platinum Corporation (see SPC press release December 15, 2020), a company that Transition
created through the spinout of its Aer-Kidd asset in the Sudbury Basin, has closed an over-subscribed
non-brokered private placement which resulted in gross proceeds of $7,823,158 (
the "Offering
).
SPC
has filed a preliminary prospectus with the securities regulatory authorities in Ontario, Alberta and British
Columbia in connection with an application to list its common shares (the "Common Shares") on the
TSX Venture Exchange. The Offering was led by strategic investment partner Dundee Goodman
Merchant Partners (DGMP) and the filing of preliminary prospectus by SPC represents a significant
milestone in Transition's execution of the Project Generator business model. Transition owns
15,000,000 shares of SPC, representing approximately 15% of the outstanding shares.
Based on the
completion of the SPC financing, this equates to $3,000,000 of value with considerable upside going
forward.
Scott McLean, P.Geo., CEO of Transition stated, "
The filing of a preliminary prospectus represents
substantial progress for SPC as it moves toward a public listing in Q1 2021 and validates the
Transition business model, gaining liquidity for its shareholdings.
The Transition business model
provides shareholders with exposure to numerous projects, equity positions and royalties while
minimizing equity dilution and mitigating risk."
McLean further noted that
, "Nickel is forecasted to perform well in the coming years as demand is
expected to increase significantly.
Transition's exposure to nickel is enhanced through its significant
ownership position in SPC.
Sudbury is the best nickel mining camp in the world and SPC is
positioned better than any other junior exploring the camp."
Listing Application Preliminary Prospectus Filing
SPC has submitted an application to list its Common Shares on the TSX Venture Exchange.
Concurrently with the listing application, a preliminary prospectus has been filed with the securities
commissions in the provinces of British Columbia, Alberta and Ontario and contains important
information relating to the company, the listing and the Common Shares.
Details of Financing
Pursuant to the Offering,SPC issued 29,535,093 Special Warrants (the
"Special Warrants"
) at a price
of $0.20 per Special Warrant, for gross proceeds of $5,907,018. Each Special Warrant is convertible to
a Common Share and is furthermore subject to the Penalty Provision if SPC is not listed early in the New
Year.
In addition to the Special Warrant, the Company issued 7,983,917 flow-through common shares
(the
"FT Shares"
) at a price of $0.24 per FT Share, for gross proceeds of $1,916,140 for overall total
gross proceeds of $7,823,158.
About Transition Metals Corp
Transition Metals Corp (TSXV: XTM) is a Canadian-based, multi-commodity project generator that
specializes in converting new exploration ideas into Canadian discoveries in Canada. The award-
winning team of geoscientists has extensive exploration experience in established, emerging and
historic mining camps and actively develops and tests new ideas for discovering mineralization in places
that others have not looked, which often allows the company to acquire properties inexpensively. The
team is rigorous in its fieldwork and combines traditional techniques with newer ones to help unearth
compelling prospects and drill targets. Transition uses the project generator business model to acquire
and advance multiple exploration projects simultaneously, thereby maximizing shareholder exposure to
discovery and capital gain. 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. The Company has an expanding portfolio that currently includes more than 25 gold,
copper, nickel and platinum projects across Canada.
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.
Further information is available at
www.spcnickel.com
by contacting:
Scott McLean, P.Geo.
Chief Executive Officer
Transition Metals Corp
Tel: (705) 669-0590
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/70256