TomaGold to Acquire Red Metal Resources
[Click image to enlarge]
[Click image to enlarge]
TomaGold Corporation has signed a letter of intent (LOI) to acquire Red Metal Resources Ltd.
Red Metal will own, or has the option to own, 100 percent of three projects (Farellon, Perth and Mateo) located in the prolific Candelaria iron oxide copper-gold (IOCG) belt of Chile’s coastal Cordillera, host to Freeport McMoRan’s Candelaria Mine and Anglo American’s Mantoverde Mine.
“This is a great transaction for TomaGold, as we are adding high-quality assets with strong exploration potential to our portfolio of properties. We are also diversifying our asset base into copper-gold properties in the world’s leading copper producing country. Moreover, this transaction will enable us to become a producer and generate cash flow on a short-term horizon,” said David Grondin, president and CEO of TomaGold.
The proposal would be that Red Metal shareholders will receive in exchange an aggregate consideration of C$3,250,000 payable through: (i) the payment in cash of the Red Metal’s debts for a maximum amount of C$500,000; and (ii) for the remainder of the aggregate consideration, the issuance of class “A” common shares of the capital stock of TomaGold at a price that is the higher between the average market price over the 20 days before the execution date of the Definitive Agreement and of C$0.15, subject to a maximum price of C$0.20. The parties to the transaction are at arm’s length.
The LOI includes customary provisions, including non-solicitation of alternative transactions, the right to match superior proposals and the closing by TomaGold of a financing of C$700,000 before the closing of the transaction. The parties have agreed to a break-up fee of C$175,000 (i) payable to TomaGold if Red Metal is in default of this LOI and if a superior proposal is accepted by Red Metal’s shareholders, and (ii) payable to Red Metal if TomaGold does not complete the transaction for reasons other than discovering an issue with their confirmatory due diligence.
To read more details in the company’s press release, CLICK HERE
About TomaGold
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.
To stop by TomaGold’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2016 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
