TomaGold Corporation
TSX VENTURE : LOT

TomaGold Corporation

October 24, 2013 11:07 ET

TomaGold to Acquire a 70% Interest in Murgor's Fancamp and Embry Properties and Consolidates its Claim Holdings Around Monster Lake

MONTREAL, QUÉBEC--(Marketwired - Oct. 24, 2013) - TomaGold Corporation (TSX VENTURE: LOT) ("TomaGold" or the "Company") is pleased to announce that it has entered into an option and joint-venture agreement to acquire a 70% interest in each of the Fancamp and Embry properties from Murgor Resources Inc. ("Murgor"), following the fulfillment of the conditions shown in the following chart, over a three-year period:

Fancamp Embry
Exploration Expenses
- First anniversary
- Second anniversary
- Third anniversary

$250,000
$250,000
$250,000

$100,000
$100,000
$100,000
TomaGold Common Share Issuance
- Closing of the transaction
- First anniversary
- Second anniversary
- Third anniversary

500,000
300,000
250,000
200,000

200,000
100,000
100,000
100,000
Cash payments
- Closing of the transaction
- First anniversary
- Second anniversary
- Third anniversary

$50,000
$40,000
$40,000
$80,000

$15,000
$15,000
$15,000
$25,000

The Company must issue an additional 250,000 common shares of the Company (the "Common Shares") for each tranche of 250,000 proven ounces of gold in a 43-101 resource estimate, up to a maximum of 1,000,000 Common Shares for both properties collectively.

The Fancamp property consists of 43 claims covering 1,710 hectares, and the Embry property consists of 52 claims covering 2,895 hectares. The Fancamp property is adjacent to the eastern edge of the Monster Lake, Cookie Monster and Little Monster properties in the Fancamp deformation corridor, and the Embry property lies 8 km northeast of the Monster Lake property, in the same gold corridor. The Fancamp property also hosts the Murgor A, B and C zones.

David Grondin, President and Chief Executive Officer of TomaGold, said that: "This transaction brings our total number of claims in the Monster Lake area to 275 claims for a total area of 13,094 hectares, of which 10,199 hectares are contiguous. The Fancamp property has two exploration ramps, and was subject to trenching and drilling work that led to the discovery by Murgor of five gold zones with very interesting grades and widths. On the Embry property, preliminary exploration work has showed some gold potential."

Results of historical exploration work on Fancamp

  1. Results of drilling in the mid-1980s:
Zone A: 8.22 g/t Au over 6.10 m
5.14 g/t Au over 3.36 m
4.60 g/t Au over 3.05 m
Zone B: 9.3 g/t Au over 8.2 m
  1. In August 2009, Murgor carried out a trenching program to better understand the structure of the mineralization on Fancamp. The following three additional zones were identified:
West trench East trench South trench
10.40 g/t Au over 4.30 m
5.21 g/t Au over 5.60 m
18.03 g/t Au over 1.60 m
5.75 g/t Au over 0.90 m
6.69 g/t Au over 1.40 m
13.05 g/t Au over 0.80 m
18.90 g/t Au over 1.00 m
7.67 g/t Au over 1.00 m
5.71 g/t Au over 0.98 m

TomaGold key properties - Monster Lake area : http://media3.marketwire.com/docs/906635e.pdf.

This transaction is subject to regulatory approval, and the common shares to be issued will be subject to a hold period of four months and one day.

The technical content of this press release has been reviewed and approved by André Jean, P. Eng., a qualified person under National Instrument 43-101.

About TomaGold Corporation

TomaGold Corporation is a Canadian-based mining exploration company whose primary mission is the acquisition, exploration and development of gold projects in Canada and abroad.

Neither 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. Statements made in this news release that are not historical facts are "forward-looking statements" and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these "forward-looking" statement.

Contact Information

  • TomaGold Corporation
    David Grondin
    President and Chief Executive Officer
    (514) 206-7727
    www.tomagoldcorp.com