TOMAGOLD CORPORATION (TSX-V:LOT) is pleased to announce that IAMGOLD Corporation has agreed to subscribe by way of private placement 27,777,777 common shares of TomaGold at a price of $0.09 per common share for gross proceeds of approximately $2,500,000. On closing date of the transaction, IAMGOLD will own approximately 19.98% of the issued and outstanding common shares of TomaGold on a non-diluted basis.
David Grondin, TomaGold’s President and CEO, stated: “We are extremely pleased and proud to have IAMGOLD as a strategic partner, as well as an exploration partner. This transaction confirms IAMGOLD’s growing interest in the Monster Lake Project, which we believe has potential to develop into a mine with continued exploration success. The last set of results on Monster Lake (see press release dated July 6, 2017) have confirmed the presence of further high-grade intersections, continuing to demonstrate the high grade gold potential of the project. The proceeds from this transaction will allow us to prepare a strategic framework aimed at exploring our other promising projects with the objective of increasing their value for our shareholders.”
On closing of the investment, IAMGOLD and TomaGold will enter into an investor rights agreement pursuant to which IAMGOLD will have the right to participate in certain equity financings in order to maintain its interest of up to 19.98% in TomaGold. Also, TomaGold and IAMGOLD have agreed that a portion equal to $1,250,000 of the private placement shall qualify as work expenditures relating to exploration and evaluation activities for the Monster Lake project.
The proceeds from the $2,500,000 private placement will be primarily used for exploration on TomaGold’s properties, as well as for working capital and general corporate purposes. All of the securities issued under this transaction will be subject to a hold period of four months and one day from the closing date in accordance with applicable Canadian securities laws. The closing of the private placement is expected to occur in the next 30 days. Completion of the private placement is subject to customary closing conditions.
About TomaGold Corporation
TomaGold Corporation is a Canadian mineral exploration company engaged in the acquisition, assessment, exploration and development of gold mineral properties. To optimize its chances of discovery and minimize its exploration risk, TomaGold aims to develop high-grade gold properties with major mining companies. It currently has joint venture agreements with IAMGOLD Corporation for the Monster Lake project, with Goldcorp Inc. for the Sidace Lake property, and with Goldcorp Inc. and New Gold Inc. for the Baird property. TomaGold has interests in six gold properties in northern Quebec: Monster Lake, Winchester, Lac-à-l’Eau-Jaune, Monster Lake East, and Obalski near the Chibougamau mining camp. It also holds a 39.5% interest in the Sidace Lake property and a 24.5% in the Baird property near the Red Lake mining camp in Ontario. Finally, it has an option to acquire a 70% interest in the Hazeur property, at the southern edge of the Monster Lake group of properties.
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