TSX-V-listed TomaGold has entered into a definitive agreement with fellow-listed Pacton for the sale of its 39.5% interest in the Sidace Lake property, in Ontario.
The property is owned in joint venture (JV) with Evolution Mining and Newmont, which have approved the transaction.
In terms of the agreement, Pacton will pay $250 000 in cash and issue ten-million common shares in the company to TomaGold, which amounts to $800 000 in value.
Once Pacton files a technical report on the property, showing a gold resource estimate of 750 000 oz gold or more, Pacton will issue a further 4.1-million shares, or pay $500 000, to TomaGold.
TomaGold will pay a 5% finder’s fee to Bay Capital Markets.
The transaction is now subject to regulatory approval.
TomaGold retains its interests in several other gold properties in Canada.
Meanwhile, Pacton says the Sidace Lake property is contiguous to its current claim package in the Red Lake area, in Ontario, and is an advanced gold project with more than 81 600 m of historical drilling done. Pacton will enter the JV as project operator and plans to aggressively expand the mineralised zones at the project with exploration drilling.