TomaGold diversifies into gold brokerage
PRESS RELEASE
TSXV: LOT
TomaGold diversifies into gold brokerage
• Creation of subsidiary TomaSouth Corporation to conduct gold brokerage activities in South
America.
• Closing of an initial transaction, involving 340 ounces of gold.
• Access to a $1 million credit facility to increase the number and volume of transactions .
Montreal, Quebec, January 29, 2018 - TOMAGOLD CORPORATION (TSXV: LOT) (“TomaGold” or the
“Corporation”) is pleased to announce the creation of a new subsidiary, TomaSouth Corporation
(“TomaSouth”), specialized in gold brokerage. More specifically, TomaSouth's activities will consist of buying
gold from artisanal producers and transporting it to refineries.
Start of TomaSouth’s activities
TomaSouth closed its first transaction, for 340 ounces of gold, in the second quarter. As part of that
transaction, the Corporation entered into a partnership with local entities that will oversee day -to-day
operations. The expertise of those local partners and their access to an extensive network of South American
gold producers are key to the expansion of the Corporation's brokerage activities.
The Corporation has established a revenue-sharing plan for the partnership under which it will receive cash
consideration of 50% to 85% of the monthly earnings based on the volume of transactions . In addition, it
paid its local partners an initial $50,000 and will make a final payment of $ 50,000 on closing of the second
transaction. The Corporation will also grant a total of two million consultant options that are exercisable when
certain performance targets are reached, as follows: once the Corporation has received the proceeds for a
total of 50 kg of gold traded in accordance with the consulting agreement, the holder may exercise its rights
for one-quarter of the options granted; once the Corporation has received the proceeds for a total of 100 kg
of gold traded in accordance with the consultation agreement, the holder may exercise its rights for a second
quarter of the options granted; and once the Corporation has received the proceeds for a total of 250 kg of
gold traded in accordance with the consultation agreement, the holder may exercise its rights for the
remaining half of the options granted.
Line of credit
To finance its new activities, the Corporation has obtained a $1 million line of credit from investors in Quebec.
The credit facility bears interest at an annual rate of 11.95% on any used balance and is renewable every
two years. The Corporation will also issue a total of 850,000 bonus shares of its capital stock to the investors
in two annual tranches of 425,000 shares priced at $0.09 per share. The closing of the line of credit is
expected to occur in the next 30 days.
“This new gold brokerage business will have significant benefits for TomaGold , as it will enable us to
generate positive cash flow for our exploration activities without creating excessive dilution,” said David
Grondin, President and Chief Executive Officer of TomaGold. “We will continue to expand our network in
South America over the coming weeks by building solid relationships with local producers. With the help of
our partners, we’ll have access to a vast network of gold producers of all sizes. Along with our new credit
facility, this initiative will enable us to increase the number and volume of our transactions and generate
growing revenues for the Corporation.”
The common shares to be issued under the credit facility are subjec t to a minimum four-month hold period.
The financing is subject to the approval of the TSX Venture Exchange.
About TomaGold Corporation
TomaGold Corporation is a Canadian mineral exploration company engaged in the acquisition, assessment,
exploration and development of gold mineral properties. To optimize its chances of discovery and minimize
its exploration risk, TomaGold aims to develop high -grade gold properties with major mining companies. It
currently has joint venture agreements with IAMGOLD Corporation for the Monster Lake pr oject, with
Goldcorp Inc. for the Sidace Lake property, and with Goldcorp Inc. and New Gold Inc. for the Baird property.
TomaGold has interests in six gold properties in northern Quebec: Monster Lake, Winchester, Lac -à-l'Eau-
Jaune, Monster Lake East, Obals ki and Lac Cavan near the Chibougamau mining camp. It also holds a
39.5% interest in the Sidace Lake property and a 24.5% in the Baird property near the Red Lake mining
camp in Ontario. Finally, it has an option to acquire a 70% interest in the Hazeur prop erty, at the southern
edge of the Monster Lake group of properties.
The Corporation is also engaged in gold brokerage activities in South America through its subsidiary,
TomaSouth Corporation.
Contact:
David Grondin
President and Chief Executive Officer
(514) 583-3490
www.tomagoldcorp.com
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Ven ture Exchange) accepts
responsibility for the adequacy or accuracy of this news release. The statements in this news release that are not historical facts are "for ward-looking
statements". Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may
vary materially from those described in such "forward-looking" statements.