TomaGold signs agreements to acquire majority of Chibougamau Mining Camp properties
- Game-changer strategy for TomaGold, which will allow it to acquire a district-size land package
- The agreements comprise 20 mining properties, hosting a mix of copper-gold-silver-zinc mineralization, of which 6 were past-producing mines
- TomaGold’s objective is to further consolidate the Chibougamau Mining Camp with the goal of increasing the belt’s copper and gold resource and enhance shareholder value
MONTREAL, Aug. 14, 2023 (GLOBE NEWSWIRE) -- TOMAGOLD CORPORATION (TSXV: LOT) (OTCQB: TOGOF) (“TomaGold” or the “Corporation”) is pleased to announce that it has entered into agreements with SOQUEM Inc. (“SOQUEM”), Chibougamau Independent Mines Inc. (TSXV: CBG) (“Chibougamau”) and Globex Mining Enterprises Inc. (TSX: GMX) (“Globex”) to acquire a total of 20 mining properties that currently form the majority of the Chibougamau Mining Camp, in Québec, Canada (the “Properties”).
In order to acquire the Properties, the Corporation has committed to make global cash payments of $13,805,000, work commitments of $10,425,000, issue 16,625,000 common shares of TomaGold and issue an additional amount of $1,825,000 in common shares of TomaGold over a period of 2 to 5 years in accordance with the specific agreements. Upon signing, TomaGold will be required to make cash payments of $540,000, issue 6,625,000 common shares of TomaGold and issue an additional amount of $25,000 in common shares of TomaGold. A summary of each agreement is included below. The Corporation is currently in advanced discussions with potential financial and mining partners to finance the acquisition, exploration and development of these projects.
David Grondin, President and CEO of TomaGold, stated: “Never in its last 75-year history has the Chibougamau Mining Camp been controlled and developed by one operator with a global vision. With these acquisitions, we have achieved a first step towards that goal. This game-changer strategy will allow TomaGold to optimize the allocation of financial, human and technical resources under one roof for exploration, development and potentially production. By consolidating these assets, we will also have a better chance of attracting interest from first tier mining companies looking for large projects to expand their resources, and optimally finance the development of the mining camp through TomaGold.”
Map of projected acquisitions
Summary of 100% earn-in agreements
| SOQUEM Inc. Option to acquire a 100% interest in the Williams (Au-Cu-Zn), David (Au-Cu-Zn), Brosman (Au-Ag-Cu-Mo), Radar (Au-Ag-Cu-Zn), Dufault (Au-Cu-Zn), McKenzie (Au-Ag-Cu-Zn) and Bruneau (Au-Cu) properties. | |||||||
| Cash | Work req. | Shares (#) | Shares ($) | ||||
| Effective date | $ | 25,000 | $ | 25,000 | |||
| Year 1 | $ | 325,000 | $ | 50,000 | |||
| Year 2 | $ | 500,000 | $ | 75,000 | |||
| Year 3 | $ | 1,000,000 | $ | 100,000 | |||
| Year 4 | $ | 1,500,000 | $ | 125,000 | |||
| TOTAL | $ | 25,000 | $ | 3,325,000 | $ | 375,000 | |
| Chibougamau Independent Mines Inc. Option to acquire a 100% interest in the Berrigan South (Au-Zn), Berrigan Mine (Au-Ag-Zn), Antoinette Lake (Zn-Au-Ag), Élaine Lake (Zn-Au-Ag) and Gwillim (Au-Cu) properties. | |||||||
| Cash | Work req. | Shares (#) | Shares ($) | ||||
| Effective date | $ | 300,000 | 6,000,000 | ||||
| Year 1 | $ | 50,000 | $ | 600,000 | $ | 150,000 | |
| Year 2 | $ | 300,000 | $ | 800,000 | $ | 200,000 | |
| Year 3 | $ | 500,000 | $ | 1,200,000 | $ | 300,000 | |
| Year 4 | $ | 750,000 | $ | 1,500,000 | $ | 350,000 | |
| Year 5 | $ | 750,000 | $ | 1,500,000 | $ | 350,000 | |
| TOTAL | $ | 2,650,000 | $ | 5,600,000 | 6,000,000 | $ | 1,350,000 |
| Globex Mining Enterprises Inc. Option to acquire a 100% interest in the Gwillim group of claims (Au-Ag). | |||||||
| Cash | Work req. | Shares (#) | Shares ($) | ||||
| Effective date | $ | 15,000 | 625,000 | ||||
| Year 1 | $ | 15,000 | $ | 150,000 | $ | 25,000 | |
| Year 2 | $ | 25,000 | $ | 150,000 | $ | 25,000 | |
| Year 3 | $ | 37,500 | $ | 200,000 | $ | 25,000 | |
| Year 4 | $ | 37,500 | $ | 500,000 | $ | 25,000 | |
| Year 5 | $ | 500,000 | |||||
| TOTAL | $ | 130,000 | $ | 1,500,000 | 625,000 | $ | 100,000 |
Summary of asset purchase agreement
| Chibougamau Independent Mines Inc. Acquisition of a 100% interest in the Kokko Creek (Au-Cu), Quebec Chibougamau GoldFields (Au-Ag-Cu), Copper Cliff Extension (Au-Cu), Grandroy (Au-Cu), Tommy Zones (Au-Cu), Bateman Bay (Au-Cu-Ag) and Virginia Option (Cu) properties. | |||
| Cash | Shares (#) | ||
| Exclusivity (6 months) | $ | 200,000 | |
| Effective date | $ | 4,800,000 | 10,000,000 |
| Year 1 | $ | 3,000,000 | |
| Year 2 | $ | 3,000,000 | |
| TOTAL | $ | 11,000,000 | 10,000,000 |
The agreements are subject to regulatory approval. The common shares to be issued in relation with the agreements are subject to a resale restriction period of four months and one day.
The technical content of this press release has been reviewed and approved by André Jean, P.Eng., the Corporation’s Director of Exploration and a qualified person under National Instrument 43-101.
About TomaGold
TomaGold Corporation (TSXV: LOT) (OTCQB: TOGOF) is a Canadian mineral exploration company engaged in the acquisition, assessment, exploration and development of gold, copper, rare earth elements and lithium projects. TomaGold holds interests in five gold properties near the Chibougamau mining camp in northern Quebec: Obalski, Monster Lake East, Monster Lake West, Hazeur and Doda Lake, as well as a 24.5% interest through a joint venture with Evolution Mining Ltd. and New Gold Inc. in the Baird property, located near the Red Lake mining camp in Ontario. In addition, it owns a 100% interest in a lithium property and in the Star Lake rare earth elements property, located in the James Bay region of Quebec.
Contact:
David Grondin
President and Chief Executive Officer
(514) 583-3490
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Some of the statements contained in this press release are forward-looking statements within the meaning of applicable securities laws. Forward-looking statements can be identified by the use of words such as “expects”, “intends”, “is expected”, “potential”, “suggests” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “might” or “will” be taken, occur or be achieved. Forward-looking statements are not historical facts and are subject to a number of risks and uncertainties beyond the Corporation’s control. Readers are cautioned that such statements are not guarantees of future performance and that actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.
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