Receives C$8.5 million For 25% Stake In Quebec Project
TomaGold Corporation (TSXV:LOT) has signed an agreement for the sale of its 25% interest in the Monster Lake Project to IAMGOLD Corporation.
The Monster Lake Project comprises the Monster Lake, Winchester and Lac à l’eau jaune properties located in the Chibougamau mining camp in Quebec.
IAMGOLD will pay TomaGold C$8.5 million as consideration for the Minority Interest, consisting of C$500,000 in cash and C$8 million in IAMGOLD common shares based on a 10-day volume weighted average price (VWAP) on the TSX preceding the date of signing. IAMGOLD currently holds a 75% interest in the Monster Lake Project.
“This is a great transaction for TomaGold, as it will allow us to refocus our efforts on exploration with a combined cash and share position of over $10 million,” said David Grondin, President and Chief Executive Officer of TomaGold.
“We are proud of what we have accomplished with Monster Lake, taking a promising exploration gold project and developing it into a high-grade gold deposit with the help of our joint-venture partner, IAMGOLD.
“We believe that our current portfolio of properties has strong exploration potential, with Obalski and Baird showing high-grade historical results generated with very limited work. Our properties are also located in known mining camps in proximity to major discoveries: Monster Lake East, Monster Lake West and Hazeur are adjacent to the Monster Lake Deposit; Obalski, an old high-grade gold-copper mine, is located in the Chibougamau mining camp; and Baird is located in the Red Lake mining camp, adjacent to Pure Gold’s Madsen Mine. “Our goal will be to replicate the success we achieved at Monster Lake by enhancing our management team and adding strong technical expertise to lead the work on our promising exploration projects,” Mr Grondin concluded.