TomaGold, IAMGOLD Renegotiate Monster Lake Agreement

TomaGold Corp. (TSXV:LOT) announced that it’s renegotiated its Monster Lake project agreement with IAMGOLD Corp. (TSX:IMG,NYSE:IAG).
As quoted in the press release:

Under the terms of the new agreement, IAMGOLD will acquire 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, which will be paid at the closing of the transaction.
IAMGOLD will also have 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 will be 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, it’s 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.

Click here to read the full TomaGold Corp. (TSXV:LOT) press release.