TomaGold Announces a Joint Venture Agreement With Quinto Real Capital Corporation for the Monster Lake Property
MONTREAL, QUEBEC -- (Marketwire) -- 11/26/12 -- TomaGold Corporation (TSX VENTURE: LOT) ("TomaGold" or the "Company") is pleased to announce that it has signed a joint venture agreement with Quinto Real Capital Corporation ("Quinto") for the exploration and development of the Monster Lake property, located 44 km southwest of Chibougamau, Quebec.
The agreement grants Quinto the option to acquire an initial 50% interest in the Monster Lake property in consideration of one million shares of Quinto to be issued on closing of the transaction, $350,000 paid to TomaGold over a four-year period, and funding of $6 million in exploration work over a four-year period.
Once it has earned its 50% interest, Quinto will have the option of acquiring an additional 20% interest by the seventh anniversary of the agreement in consideration of $4 million in additional exploration work or a feasibility study fully financed by Quinto.
David Grondin, President and CEO of TomaGold, stated that: "We are very pleased with this transaction with Quinto, a strong partner who will enable us to advance the Monster Lake project without increasing shareholder dilution. In addition to this major transaction for the Company, we will be fairly active over the winter with our upcoming drilling program and preparations for bulk sampling. In this regard, I would underscore the positive results announced recently from metallurgical testing on the 325 structure composite sample."
Furthermore, Michael Curtis and Marcel Bergeron have resigned from the Board of Directors of TomaGold and abstained from voting in connection with this transaction. The Company wishes to thank them for their valuable contributions.
TomaGold is also announcing a non-brokered private placement for up to $1 million, including $800,000 in flow-though units and $200,000 in common units.
Each flow-through unit consists of 6,000 flow-through common shares priced at $0.12 per share, 1,800 common shares priced at $0.10 per share and 1,800 warrants. Each warrant entitles its holder to purchase one common share of the Company at $0.12 within a one-year period.
Each common unit consists of one common share priced at $0.12 and one warrant, with each warrant entitling its holder to purchase one common share of the Company at $0.12 within a one-year period.
The joint venture agreement and private placement are subject to regulatory approval.
ABOUT THE MONSTER LAKE PROJECT
The Monster Lake property is located in northwestern Quebec, 44 kilometres southwest of the town of Chibougamau. It is easily accessible by road and near a major power line. Over 25,000 metres of diamond drilling has been done since 1984 along the four-kilometre mineralized corridor. During the winter of 2012, TomaGold drilled 16 additional holes for a total of 2,420 metres, and made a major discovery of 237.6 grams per tonne gold over 5.7 metres in Hole M-12-60. The mineralization is associated with dark quartz-sulphide veins within a shear zone 3-10 metres wide in basaltic units.
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.
The technical content of this press release has been reviewed and approved by Maurice Giroux, a qualified person as defined by NI 43-101.
For a complete list of drill results from the Monster Lake project, please visit our website, at www.tomagoldcorp.com
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.
Contacts:
TomaGold Corporation
David Grondin
President and CEO of TomaGold
(514) 206 7727
www.tomagoldcorp.com