Business
TomaGold diversifies into gold brokerage
Creation of subsidiary TomaSouth Corporation to conduct gold brokerage activities in South America Closing of an initial transaction, involving 340 ounces of go
About this update from Tomagold Corporation Class A
[{"type":"text","content":" Creation of subsidiary TomaSouth Corporation to conduct gold brokerage activities in South America Closing of an initial transaction, involving 340 ounces of gold Access to a $1 million credit facility to increase the number and volume of transactions MONTREAL, QUEBEC--(Marketwired - Jan. 29, 2018) - TOMAGOLD CORPORATION (TSX VENTURE:LOT) (\"TomaGold\" or the \"Corporation\") is pleased to announce the creation of a new subsidiary, TomaSouth Corporation (\"TomaSouth\"), specialized in gold brokerage. More specifically, TomaSouth's activities will consist of buying gold from artisanal producers and transporting it to refineries. Start of TomaSouth's activities TomaSouth closed its first transaction, for 340 ounces of gold, in the second quarter. As part of that transaction, the Corporation entered into a partnership with local entities that will oversee day-to-day operations. The expertise of those local partners and their access to an extensive network of South American gold producers are key to the expansion of the Corporation's brokerage activities. The Corporation has established a revenue-sharing plan for the partnership under which it will receive cash consideration of 50% to 85% of the monthly earnings based on the volume of transactions. In addition, it paid its local partners an initial $50,000 and will make a final payment of $50,000 on closing of the second transaction. The Corporation will also grant a total of two million consultant options that are exercisable when certain performance targets are reached, as follows: once the Corporation has received the proceeds for a total of 50 kg of gold traded in accordance with the consulting agreement, the holder may exercise its rights for one-quarter of the options granted; once the Corporation has received the proceeds for a total of 100 kg of gold traded in accordance with the consultation agreement, the holder may exercise its rights for a second quarter of the options granted; and once the Corporation has received the proceeds for a total of 250 kg of gold traded in accordance with the consultation agreement, the holder may exercise its rights for the remaining half of the options granted. Line of credit To finance its new activities, the Corporation has obtained a $1 million line of credit from investors in Quebec. The credit facility bears interest at an annual rate ...