Chibougamau Independent Mines Options West Block Property to TomaGold Corporation

ROUYN-NORANDA, Québec, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Chibougamau Independent Mines Inc. (“Chibougamau”) (CBG-TSX-V in Canada, CLL1-Frankfurt, Stuttgart and Lang & Schwarz Stock Exchanges in Germany, CMAUF-OTC in the US) is pleased to announce that it has entered into a definitive Option Agreement with TomaGold Corporation (“TomaGold”) (TSXV: LOT) (OTCQB: TOGOF) on August 11, 2023 pursuant to which Chibougamau has granted TomaGold an option to acquire the West Block, comprised of 99 claims in Barlow and McKenzie Townships, Québec.

In order to exercise its option and acquire a 100% interest in the West Block, TomaGold must make cash payments to Chibougamau in an aggregate amount of $2,650,000 over a period of five years, including an initial payment of $300,000 on the effective date of the Option Agreement; issue 6 million shares to Chibougamau within five business days of the effective date of the Option Agreement; issue additional shares to Chibougamau on an annual basis for five years thereafter in an aggregate amount of $1,350,000, at an issue price per share equal to the volume weighted average trading price of TomaGold’s shares at the respective dates of issuance; and incur expenditures on the West Block in an aggregate amount of $5,600,000 over a period of five years, including $600,000 in the first year. Any shares issued by TomaGold to Chibougamau under the Option Agreement will be subject to a four-month “hold period” under applicable securities regulations and the policies of the TSX Venture Exchange.

Chibougamau will retain a 2% Gross Metals Royalty (“GMR”) on the West Block, as will Globex Mining Enterprises Inc. (GMX-TSX) (“Globex”). TomaGold has the right to repurchase 0.5% of the 2% GMR held by each of Chibougamau and Globex for a total purchase price of $1,500,000, to be divided equally between Chibougamau and Globex.

TomaGold will seek approval from the TSX Venture Exchange for the Option Agreement, including the issuance of shares by TomaGold to Chibougamau. Chibougamau does not require approval from the TSX Venture Exchange for the option of the West Block to TomaGold as the fair market value of the West Block is less than 25% of the aggregate fair market value of Chibougamau’s assets and property interests and less than 25% of Chibougamau’s revenues in the past twelve months were derived from the West Block.