Transition Metals Corp (OTCMKTS:TNTMF) (TSXV:XTM) Stock Falls 4% In a Week: Here is Why

Transition Metals Corp (OTCMKTS:TNTMF) (TSXV:XTM) is down 4% in a week after the company sold its entire stake in the Mongowin resources to McFarlane Lake Mining, a company that is listed in the NEO Exchange under ticker MFM.

Market Stats

On Tuesday, TNTMF stock fell 0.36% to $0.1325 with more than 28.46K shares, compared to its average volume of 12.42K shares. The stock has moved within a range of $0.1202 – 0.1590 after opening trading at $0.1202.               

Project Generator Transition Metals Sells Its Mongowin Project for Cash, Shares and A, NSR Royalty

The Property sits around 13 km to the Espanola’s south and almost 70 km to the southwest of Sudbury, close to MFM’s previous gold production property McMillan. The Mongowin Township asset spans 2,605 ha and includes 122 mining and 3 patented claims.

Transition received an aggregate payment of $145,000 in cash, $500,000 in MFM stock, and a 1.5 percent Net Smelter Return royalty (NSR) on every commercial operation from this Property under the terms of the sales and purchase deal with MFM. MFM will also issue Transition early royalty payments of around $25,000 annually (in common shares or cash) starting on the 5th anniversary of the Acquisition Agreement, up to a maximum of $250,000. Finally, Transition will be eligible for a one-off payment of $2.5 million on commercial exploitation of mineral resources from this Property. So, TNTMF is worth watching.

Key Quote

Transition CEO Scott McLean commented, “The Mongowin transaction with MFM is another demonstration of the success of our Project Generator business model. Transition identified the opportunity, staked the property and confirmed the target potential. We have now been able to leverage this initial seed capital investment significantly while still preserving the upside potential through future milestone payments and a royalty. We look forward to working with McFarlane Lake Mining to advance the Property.”

Traders Corner

TNTMF stock is trading above the 50-Day and 100-Day Moving averages of $0.1270 and $0.1244 respectively. The stock is trading in neutral zone with the RSI at 50. 

Madison Hall

After graduating from the University of Buffalo, Madison gained a real interest in the markets. She tends to be a swing trader and enjoys Pilates and yoga in her downtime.