TomaGold Corporation Receives Approval for Option of Chibougamau Independent’s West Block and LOI on East Block

ROUYN-NORANDA, Québec, Sept. 13, 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 the Option Agreement announced on August 14, 2023 with TomaGold Corporation (“TomaGold”) (TSXV: LOT) (OTCQB: TOGOF) pursuant to which Chibougamau granted TomaGold an option to acquire the West Block, comprised of 99 claims in Barlow and McKenzie Townships, Québec, has been approved by regulators.

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.

Chibougamau is also pleased to announce that TomaGold has received approval of the letter of intent (“LOI”) for a potential sale of the East Block to TomaGold. The East Block is comprised of 127 claims in McKenzie, Obalski, Roy and Lemoine Townships, Québec.

Under the LOI exclusivity period, Chibougamau undertakes not to seek to enter discussions or negotiations with any party other than TomaGold regarding the sale of the East Block in consideration for which TomaGold will pay $200,000 to Chibougamau. During the exclusivity period, TomaGold will be entitled to carry out a due diligence review of the East Block.