TomaGold (TSX: LOT) Advances Monster Lake Canadian Gold Project with a JV Agreement with IAMGOLD
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By Allen Alper Jr.
on 5/24/2016
TomaGold (TSX: LOT) is currently working with IAMGOLD to advance its Canadian-based gold project through continuous drilling programs. TomaGold (TSX: LOT) President and CEO, David Grondin, with IAMGOLD’s funding and experienced team, is advancing the Monster Lake gold project. Monster Lake is the most recent high-grade gold discovery in eastern Canada.
TomaGold (TSX: LOT) President and CEO, David Grondin is optimistic about the progress that his company has had during 2015 on its Monster Lake project. A JV agreement with IAMGOLD and new acquisitions has provided the company with new focus.
Said Grondin, “We were able to make a deal with IAMGOLD and they have been continuously drilling since then. Overall, the market is challenging, but we are surviving, especially with our amended deal with IAMGOLD, and I like to say that we are progressing.” Grondin brings financial experience to the company. He said, “My background is in finance. I did most of my studying in finance and I worked as a financial analyst and in investment banking. That is my background. Nine years ago I started working in the mining sector and then I jumped into the executive side. I have been the CEO for over four years.”
The current trajectory of the company began a few years ago. Said Grondin, “It started in 2013 when we had a joint venture with IAMGOLD for $17.5 million dollars. We did three drilling campaigns and other surveys like airborne geophysics and VTEM as well as other things. Going through the current market, we started to discuss the idea that they might like to acquire a percentage interest in the project, so we renegotiated the JV. In November 2015, IAMGOLD acquired a 50% interest in the Monster Lake project for a cash payment of $3.22 million. They also have an option to acquire an additional 25% for another $10 million dollars in work over seven years.”
As the project progresses, Grondin’s team will decide what the next steps are. He said, “We are really excited about proving that the project has some merit and that it deserves some worth. Right now we are at over 20,000 metres of drilling on the Monster Lake project. Having IAMGOLD do the work is the best thing for us and we are really excited about the future. We are really excited about it.”
In addition to the work that they are doing with IAMGOLD, TomaGold acquired other projects that they are also advancing. Said Grondin, “On our end, we have two projects that we are working on, Monster Lake East and Hazeur. Monster Lake East is 100% held by TomaGold, whereas we have an option to acquire a 70% interest in Hazeur for a very reasonable price. We did some initial work to better understand the geology of the properties and are looking to do follow-up work on these properties this summer.”
The plan for 2016 includes more drilling and work on the projects, as well as possible acquisitions. Grondin said, “Some of our projects are less advanced and we need to do more ground work next summer. Also, with the recent surge in gold and base metal prices, we are seeing a lot more opportunities and will focus on seeking other promising projects.”
Financially, the company is in a solid position and does not need any funds for its Monster Lake project, as IAMGOLD has to spend $10 million to explore the property before TomaGold has to spend a dime. Said Grondin, “Right now, we have over $1 million in cash and no debt. We are still planning to do a summer program on our other properties and will invest our funds in a prudent manner, given the type of market we had over the last years.”
Grondin believes that investors should take a close look at what TomaGold has to offer. He said, “We have a Major that has taken interest in the project and has signed a JV with us. They think we have a deposit and that we can make something out of it. Going forward there is also a lot of value through our other projects. We are also looking at assets in Quebec that have the same characteristics as we have. We have no debt. We have a good share structure with investors from Europe, Canada and Asia. We have a good news flow because we are doing our work.”
http://www.tomagoldcorp.com
Corporation TomaGold
410 St-Nicolas,
Suite 236
Montréal, QC, Canada
H2Y 2P5
Phone: 514 583-3490
Fax: 514 907-9017
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