MONTREAL, QUEBEC--(Marketwired - Oct 26, 2015) - TOMAGOLD CORPORATION (TSX VENTURE:LOT) ("TomaGold" or the "Company") is pleased to announce the signature of two acquisition agreements enabling it to consolidate its position around the Monster Lake property. TomaGold therefore focus on its properties in Quebec and abandons its announced plans in Arizona.
Acquisition of a 70% interest in the Hazeur property
The Company has finalized an option agreement with Visible Gold Mines Inc. ("Visible Gold") whereby TomaGold can acquire a 70% interest in the Hazeur property for $230,000, including $5,000 payable in cash on signature of the agreement and $225,000 in exploration work, as well as the issuance of 1,550,000 common shares of the Company, over a three-year period. The Hazeur property consists of 61 mineral claims covering an area of 2,863 hectares on the southern border of the Monster Lake property. TomaGold will act as the project operator with support from Visible Gold Mine staff during the earn-in period.
Acquisition of a 100% interest in the Monster Island property
The Company has also completed the acquisition of a 100% interest in the Monster Island property belonging to Vanstar Mining Resources Inc. (TSX VENTURE:VSR) in exchange for a total cash payment of $10,000 and the issuance of 200,000 common shares of the Company. Vanstar will also retain a 1.5% NSR royalty which half can be repurchased for $750,000. The Monster Island property consists of 21 mineral claims covering an area of ?Çï?Çï1,773 hectares on the eastern border of TomaGold's Cookie Monster property.
"The addition of the Hazeur and Monster Island properties to our portfolio simply underscores our strong belief in the gold potential of the Monster Lake area," said David Grondin, President and CEO of TomaGold. "We feel that these projects are promising for the Company for the longer term, and we were able to acquire them at a reasonable cost due to the difficult market conditions. We also think our decision to increase our position in the area, which now stands at 204 contiguous mineral claims covering ?Çï?Çï10,429 hectares, is supported by the exploration results published to date for Monster Lake."
Termination of the agreement with Gold Reef Mining LLC, Arizona
The Company also announces that it has decided to terminate the agreement announced on September 30, 2014 with Gold Reef Mining LLC, Arizona, due to its inability to finance the project.
The Hazeur and Monster Island property transactions are subject to regulatory approval, and the common shares to be issued following signature of the agreements will be subject to a hold period of four months plus one day.
André Jean, P.Eng., a qualified person under National Instrument 43-101, has reviewed and approved the technical content of this press release.
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. In November 2013, the Company signed an agreement for IAMGOLD to acquire a 50% interest in each of the Monster Lake, Winchester and Lac-à-L'eau-Jaune properties in exchange for a total of 16 million dollars of exploration work and cash payments totalling $1,575,000 over five and a half years.
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