TomaGold and IAMGOLD Sign a $17.575 Million Agreement on the Monster Lake, Winchester and Lac a l’eau jaune Gold Projects
November 12, 2013 (Source: Marketwired) — TOMAGOLD CORPORATION (TSX VENTURE:LOT) (“TomaGold” or the “Company”) and IAMGOLD Corporation (“IAMGOLD”) are pleased to announce that they have finalized an option agreement in which IAMGOLD may earn a 50% interest in each of the Monster Lake, Winchester and Lac à l’eau jaune properties (the “Properties”) for a total of $17.575 million, including $16 million in exploration work and $1.575 million in payments over five years. The schedule of cumulative investments to be made by IAMGOLD is as follows:
|Exploration commitments||Payments to TomaGold|
|By the first anniversary of the agreement:||$2.0 M||On signing:
By the first anniversary:
|By the second anniversary:||$2.5 M||By the second anniversary:||$220,000|
|By the third anniversary:||$2.5 M||By the third anniversary:||$235,000|
|By the fourth anniversary:||$3.5 M||By the fourth anniversary:||$300,000|
|By the fifth anniversary:||$5.5 M||By the fifth anniversary:||$300,000|
IAMGOLD will act as the project operator with the support of TomaGold personnel during the acquisition period of its 50% interest. Once IAMGOLD has acquired its 50% interest in the Properties, the interests of TomaGold and Quinto Real Capital Corporation (“Quinto”) will be diluted proportionately such that TomaGold and Quinto hold interests of 45% and 5%, respectively, in the Monster Lake property.
David Grondin, President and CEO of TomaGold, stated that: “We are proud to have signed an agreement with IAMGOLD, a major gold producer with proven expertise in Quebec and the rest of the world. IAMGOLD’s financial and technical resources will enable us to explore Monster Lake and the neighbouring properties faster and in a more optimal manner. In addition, the larger work commitments mean that exploration work on the Properties will be ongoing. In short, this transaction is a testimony to the gold potential of Monster Lake and its surroundings, and we hope to eventually turn it into a mine.”
“We are pleased to have signed this agreement and look forward to working with TomaGold to continue to advance the exploration on the Monster Lake project,” said Craig MacDougall, SVP, Exploration at IAMGOLD.
The agreement is subject to regulatory approval.
About the Monster Lake Project
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The Monster Lake project lies in northwestern Quebec, 44 kilometres southwest of Chibougamau. Since 1984, over 40,000 metres of diamond drilling have been done along the 4-kilometre mineralized corridor.
In the winter of 2012, TomaGold drilled 16 holes for a total of 2,420 metres on the Annie zone, which resulted in a major discovery of 237.6 g/t of gold over 5.7 metres in Hole M-12-60. In 2013, the Company drilled 12 holes totalling 5,000 metres on Zone 325. All the holes intersected the gold-bearing structure, and seven of the 12 holes returned values of over 10 g/t of gold. The program also confirmed that Zone 325 was 150 metres long with a vertical depth of 330 metres, and that it was open at depth. The best drill results for Zone 325 were as follows (please refer to April 22, 2013 press release):
|Section 1100 E|
|Section 1150 E|
|Section 1200 E|
|Section 1225 E|
|Section 1250 E|
|Section 1300 E|
|Section 1365 E|
It should be noted that the sheared tuff unit hosting the gold-bearing quartz vein was intersected at a 40-50° angle to the core axis, meaning that the width of the intersection is not necessarily the true width. Based on observations on surface in recent trenching and old holes drilled by SOQUEM and Stellar Pacific Ventures, the Company estimates the true width of the mineralized zone at 70 to 85% of the width intersected in the drill holes.
The technical content of this press release has been reviewed and approved by André Jean, P. Eng., a qualified person under National Instrument 43-101.
About TomaGold Corporation
TomaGold Corporation is a Canadian-based mining exploration company whose primary mission is the acquisition, exploration and development of gold projects in Canada and abroad.
IAMGOLD (www.iamgold.com) is a mid-tier mining company with six operating gold mines (including current joint ventures) on three continents and one of the world’s top three niobium mines. A solid base of strategic assets in Canada, South America and Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational expertise.
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. Statements in this news release which are not purely historical are forward-looking statements; readers are advised that such statements are not guarantees of future results, and that actual results and events may differ materially from those indicated in the forward-looking statements.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>