TomaGold Corporation (CVE:LOT) (OTCMKTS:TOGOF) (FRA:OTM) revealed that it has signed two agreements for the acquisition of interests and mineral properties aimed at strengthening its position around the Obalski and Monster Lake properties.
The Montreal-based mineral exploration corporation has signed an agreement with Visible Gold Mines to acquire its 30% interest in the Hazeur property, located just south of Monster Lake and Monster Lake East in a cash-and-stock deal.
TomaGold will issue two million shares on closing the transaction and will make a $50,000 cash payment by May, an additional $100,000 by July, and another $100,000 by November 30, 2021. Visible Gold Mines will hold a 2% net smelter return royalty, with 1% redeemable by TomaGold for $500,000, said the company.
READ: TomaGold set to begin 10,000m drill program at Obalski next month as latest assays continue to show project's potential
TomaGold has also signed an agreement to acquire a 100% interest in 46 claims located just south of the Obalski property. As consideration, TomaGold will issue three million shares on closing of the transaction and will issue an additional two million shares, or make a cash payment of $250,000 (at the option of the corporation) one year after closing. The vendors will hold a 2% net smelter return royalty, with 1% redeemable by TomaGold for $1 million.
“These transactions will strengthen our position around Monster Lake to a total of 151 wholly-owned claims covering 8,304 hectares (83 km) situated around the IAMGOLD deposit, and will extend the Obalski property towards the south, which also has interesting geological potential,” said TomaGold CEO David Grondin in a statement.
“In addition, in line with the spring thaw, we are preparing the core material from historical drilling on Obalski to be sent to Corem for reanalysis using a leaching procedure and we will soon begin, depending on the availability of the drilling crews, our 10,000-metre drilling program on the same property,” he added.
The transactions are subject to the approval of the TSX Venture Exchange.
TomaGold has interests in five gold properties near the Chibougamau mining camp in northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Lac Doda. It also participates in a joint venture with Evolution Mining and New Gold through which it holds a 24.5% interest in the Baird property, in Ontario.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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