While TomaGold has generally been overlooked by the market, the company has had a busy year. Last month it closed a deal to sell its 25% undivided interest in the Monster Lake project and the related mineral rights to IAMGOLD (NYSE: IAG / TSX: IMG). It received $500,000 and was issued 1,464,377 common shares of IMG.[16] At a CAD$4.59 price for IMG, the current market value of this deal is CAD$7.2 million.
LOT also sold up to 80% of its interest in the Lac Doda property to Goliath Resources Limited (OTCQB: GOTRF / TSX-V: GOT). To earn a 65% interest, Goliath Resources (GOT) issued 625,000 shares and 625,000 warrants with a strike price of CAD$0.24 to LOT. At the time of this writing, GOT is trading at approximately CAD$0.40, the value of these shares and warrants is approximately $350,000. A $25,000 payment is due in 2021 and to earn the final 15%, GOT must issue another $500,000 payment to LOT by 2025.[17]
Finally, LOT sold a 39.5% interest in the Sidace Lake property to Pacton Gold Inc. (OTC US: PACXF / TSX-V: PAC). This resulted in LOT owning 950,000 shares of PAC with PAC paying $250,000 and another $800,000 worth of shares and $250,000 in cash six months after the closing date.
If an NI43-101 report on the property shows a gold resource estimate of at least 750,000 ounces, PAC will issue 416,666 common shares or pay $500,000 to LOT.[18]
The combined market value of the guaranteed portion of these three deals is approximately CAD$8–10 million, comprising the majority of LOT’s market cap of approximately CAD$13 million. So you can understand why I might be monitoring this situation with great interest. People buying at this valuation ‘theoretically’ get the rest of TomaGold for about $3 million, and the company is drilling on its leading asset as we speak.
The receipt of $500,000 from IMG provides the company with sufficient liquidity to develop its remaining assets without the need to raise cash.
TomaGold’s Obalski property – a former gold/copper producer.
Earlier this month it announced the start of a seven-hole, 2,500-metre drilling program on its flagship Obalski project.[19] The company owns a 100% stake in this 345 hectare property, a former gold-copper producer that hosts seven currently known mineralized zones.
The property is 2 km south of Chibougamau, Quebec, in the heart of the Chibougamau mining camp.[20] It produced 100,273 tonnes at grades of 1.14% Cu, 2.08 g/t Au and 6.04 g/t Ag between 1964 to 1972 and around 9,000 tonnes at a reported grade of 8.5 g/t Au in 1984. This is a mature mine that very likely has substantial economic value remaining.
Not only should gold and silver remain robust, but the price of copper has been very bullish as the expectations of demand for the metal should significantly increase in a greener economy going forward.