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TomaGold announces drilling results on Monster Lake, ends proposed spin-out, reapplies for trading and concludes property transactions
MONTREAL, Aug. 13, 2020 (GLOBE NEWSWIRE) -- TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the “Corporation”) announces that it has decided to end its proposed
About this update from Tomagold Corporation Class A
[{"type":"text","content":" MONTREAL, Aug. 13, 2020 (GLOBE NEWSWIRE) -- TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the “Corporation”) announces that it has decided to end its proposed spin-out. Trading of the Company's shares was halted on January 25, 2019 in accordance with the policies of the TSX Venture Exchange (“TSXV”) pending completion of the proposed spin-out. Given the termination of the proposed spin-out, the Corporation will file an application with the TSXV to request that trading of its common shares be resumed on the TSXV. The Corporation will confirm in a press release the date on which trading of its common shares will resume on the TSXV. “The Board of Directors has decided that the time has come for TomaGold to resume trading in its securities by terminating the spin-out,” said David Grondin, President and Chief Executive Officer of TomaGold. “During this period of inactivity, TomaGold's gold assets have increased in value, particularly with the rise in the price of gold and the renewed activity in the Chibougamau mining camp. We are now in a much better position with an interest in the high-grade Monster Lake deposit and other quality mining projects located in key areas, as well as interests in promising mining companies. Our objective will be to continue to enhance the value of our assets.” Summary of recent property transactions: Lac Doda property The Corporation has proceeded with the closing of the option agreement for the sale of up to an 80% interest in the Lac Doda property to Goliath Resources Limited (TSXV: GOT) (\"Goliath\") (see press release dated July 9, 2020). As provided in the agreement, Goliath issued to TomaGold 625,000 common shares and 625,000 warrants, with each warrant entitling the holder to acquire one common share of Goliath at a price of $0.24 for a period of 36 months. Monster Lake property On August 12, 2020, the Corporation acquired the 2.5% interest held by Quinto Resources Inc. (TSXV: QIT) in the Monster Lake property for a cash payment of $250,000 and the return of 750,000 shares of Quinto held by TomaGold. The closing of the transaction will take place no later than September 9, 2020. Following this transaction, TomaGold will hold a 25% interest in the Monster Lake property, with IAMGOLD Corporation (“IAMGOLD”) holding 75%. IAMGOLD intersects mineralization along strike at Monster Lake: IAMGOLD...