TomaGold and IAMGOLD change their agreement on the Monster Lake, Winchester and Lac-à-l’Eau-Jaune properties
Montreal, Quebec, October 31, 2014 – TomaGold Corporation (TSXV: LOT) (“TomaGold” or the “Company”) and IAMGOLD Corporation (“IAMGOLD”) have announced that they have revised the terms of their agreement dated November 12, 2013, for the acquisition by IAMGOLD of a 50% interest in each of the Monster Lake, Winchester and Lac-à-l’Eau-Jaune properties.
As a result of different factors including unusually heavy fall rains, which significantly restricted access to areas of the Monster Lake property and delayed IAMGOLD’s drilling program, IAMGOLD and TomaGold have agreed to extend the exploration commitments in the agreement from November 12 to May 1. In consideration of the change in the exploration commitments for the agreement period, IAMGOLD will spend $3 million on exploration by the revised date instead of $2 million. IAMGOLD also advanced the cash payment date and paid TomaGold $170,000.
The following table contains a summary of the changes made to the cash payment schedule and exploration commitments:
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Exploration commitments |
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Cash payments |
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On or before May 1, 2015: |
$3,000,000 |
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Until now: (paid) |
$520,000 |
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On or before May 1, 2016: (option) |
$2,000,000 |
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On or before November 12, 2015: (option) |
$220,000 |
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On or before May 1, 2017: (option) |
$2,500,000 |
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On or before November 12, 2016: (option) |
$235,000 |
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On or before May 1, 2018: (option) |
$3,000,000 |
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On or before November 12, 2017: (option) |
$300,000 |
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On or before May 1, 2019: (option) |
$5,500,000 |
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On or before November 12, 2018: (option) |
$300,000 |
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Total exploration expenditures: |
$16,000,000 |
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Total cash payments: |
$1,575,000 |
“The exploration commitments had to be changed because poor weather conditions restricted access for the planned fall drilling program,” said David Grondin, President and CEO of TomaGold. “IAMGOLD has informed us that they have completed the drilling program where access allowed, and expect to receive the results in the coming weeks. IAMGOLD is planning to resume work on the Monster Lake property in early 2015.”
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.
Contact:
TomaGold Corporation
David Grondin
President and Chief Executive Officer
(514) 206-7727
www.tomagoldcorp.com