Monster Lake (JV with IAMGOLD)
TomaGold owns a 22.5% interest in the Monster Lake property, which consists of 114 mineral claims covering an area of 3,336 hectares. It lies 44 kilometres southwest of the town of Chibougamau in northwestern Quebec. The property is easily accessible by road, and a high-voltage transmission line crosses the area nearby.
Option agreement with IAMGOLD Corporation
On November 2, 2015, TomaGold announced the terms of an amended agreement with IAMGOLD Corporation ("IAMGOLD"), whereby IAMGOLD acquired a 50% interest in the Monster Lake project, which comprises the Monster Lake, Winchester and Lac à l'Eau Jaune properties, in exchange for a $3.22 million cash payment to TomaGold.
IAMGOLD also has an option to acquire an additional 25% interest by spending $10 million in exploration work over a 7-year period, with a minimum of $500,000 to be spent each year. The effective starting date for the exploration work commitment is January 1, 2015.
Upon IAMGOLD earning a 75% interest in the Monster Lake project, TomaGold will have the option to fund its pro-rata share of exploration expenditures to keep its interest in the project, subject to a dilution clause if the Company is unable to fund its share of exploration expenditures. If TomaGold is diluted to a 10% interest in the project, its ownership interest will be converted to a 1.5% NSR with a buyback provision. IAMGOLD would then have the possibility to buy back a 0.75% NSR for $2 million and the payment for the remaining 0.75% NSR would be capped at $8 million.
The agreement also includes two future success-based contingent payments based on specific milestones, which are IAMGOLD's decision to build a mine and the beginning of commercial production. For each of these milestones, IAMGOLD would pay an additional $1 million to TomaGold in cash or common shares of IAMGOLD, at IAMGOLD's discretion.
Maps and geological information