Transition MetalsCorp. said April 26 that it has signed a binding letter of intent withAldershot Resources Ltd.to option the Gowgandagold project in Ontario.

Under the terms, Aldershot can earn up to a 75% interest in theproject. Aldershot must commit to funding C$400,000 in exploration expendituresin the first year and C$2 million over three years to earn a 51% share.

Aldershot must also issue C$200,000 worth of shares on the firstanniversary and C$250,000 worth of shares on the third anniversary of the agreement.

Aldershot can earn a 75% interest in the project by committingto complete a bankable feasibility study.

Aldershot will issue 1 million shares to Transition Metals inconsideration for entering into the binding letter of intent.

Transition Metals will serve as the project operator during theoption term. If a joint venture is formed after Aldershot earns 51% or 75% of theproject, each partner will fund work programs to maintain its interest.

Gowganda comprises 34 mining claims, or 3,424 hectares.