TomaGold enters into definitive agreement for the sale of its stake in the Sidace Lake property to Pacton Gold
MONTREAL, April 02, 2020 (GLOBE NEWSWIRE) — TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the “Corporation”) is pleased to announce that, further to its press release dated January 31, 2020, it has entered into a definitive agreement (the “Agreement”) for the sale of its 39.5% interest in the Sidace Lake property to Pacton Gold Inc. (TSXV: PAC, OTC: PACXF) (“Pacton”). Under the terms of the Agreement, Pacton must pay and issue the following to TomaGold:
Upon final acceptance of the transaction by the TSX Venture Exchange (“TSXV”), Pacton will pay $250,000 and issue 10,000,000 common shares to TomaGold;Within six months of TSXV acceptance, Pacton will pay $250,000 and issue $800,000 worth of common shares to TomaGold at a price per share equal to the greater of $0.16 and the 5-day VWAP of Pacton’s shares immediately preceding the date of issuance; andUpon Pacton filing a National Instrument 43-101 technical report on the Sidace Lake property showing a gold resource estimate of 750,000 oz Au or greater, Pacton will issue 4,166,666 common shares or pay $500,000 to TomaGold.TomaGold will pay a 5% finder’s fee from the cash payments and the common shares it will receive to Bay Capital Markets.The transaction, including the finder’s fee, is subject to regulatory approval. All parties to the transaction operate at arm’s length from one another. All common shares to be issued will be subject to a mandatory holding period of four months and one day from the closing date.About TomaGold Corporation
TomaGold Corporation is a Canadian mineral exploration Corporation engaged in the acquisition, assessment, exploration and development of gold mineral properties. It currently has joint venture agreements with IAMGOLD Corporation for the Monster Lake project and with Newmont Corporation and New Gold Inc. for the Baird property. TomaGold has interests in seven gold properties near the Chibougamau mining camp in northern Quebec: Monster Lake, Winchester, Lac à l’eau jaune, Monster Lake East, Monster Lake West, Obalski and Lac Doda. It also holds a 24.5% interest in the Baird property near the Red Lake mining camp in Ontario, and has a 70% interest in the Hazeur property, at the southern edge of the Monster Lake group of properties.Contact:
President and Chief Executive Officer
www.tomagoldcorp.comNeither 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. The statements in this news release that are not historical facts are “forward-looking statements”. Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those described in such “forward-looking” statements.