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TomaGold (TSXV:LOT) got a major boost this morning from intermediate gold producer IAMGOLD (TSX:IMG), which announced a $17.5 million option agreement with the Montreal-based gold junior, on three of its properties in Quebec.
Under the agreement, IAMGOLD will earn a 50 percent interest in each of the Monster Lake, Winchester and Lac à l’eau jaune properties, if IAMGOLD spends $16 million in exploration expenses plus $1.575 million in payments over the next five years.
IAMGOLD would operate the Monster Lake project during the earn-in period.
“We are proud to have signed an agreement with IAMGOLD, a major gold producer with proven expertise in Quebec and the rest of the world. IAMGOLD’s financial and technical resources will enable us to explore Monster Lake and the neighbouring properties faster and in a more optimal manner,” David Grondin, President and CEO of TomaGold, said in a statement, adding:
“In addition, the larger work commitments mean that exploration work on the Properties will be ongoing. In short, this transaction is a testimony to the gold potential of Monster Lake and its surroundings, and we hope to eventually turn it into a mine.”
The news sent TomaGold shares rocketing 14.2 percent, as of mid-morning Tuesday, and is the latest in a string of news pieces that has seen the company’s stock appreciate 60 percent in the last month.
Only a month ago, TomaGold announced it was acquiring the Cooke Monster and Little Monster properties adjacent to Monster Lake, and later in October agreed with Murgor Resoures to acquire a 70-percent interest in Murgor’s Fancamp and Embry properties. TomaGold also closed two financings in October worth a respective $384,500 and $954,500.
Located 44 kilometers southwest of Chibougamau, Monster Lake has had about 40,000 meters of diamond drilling done along the 4-kilometer mineralized corridor. TomaGold’s major discovery in 2012 was 237.6 grams per tonne over 5.7 meters in one hole. This year TomaGold drilled 12 holes totalling 5,000 meters, with 7 holes returning values of over 10 g/t, according to the company.
IAMGOLD has six operating gold mines and is also a major producer of niobium.
Securities Disclosure: I, Andrew Topf, hold no investment interest in any of the companies mentioned.
Editorial Disclosure: TomaGold is a client of the Investing News Network. This article is not paid-for content.
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