Canadian mineral explorer TomaGold has announced the purchase of 20 mining properties in the Chibougamau mining camp in Quebec, Canada.
TomaGold purchased the properties from Canadian mining companies SOQUEM, Globex Mining and Chibougamau Independent Mines, which all held properties within the mining camp.
Why it matters
With this purchase, TomaGold unites 20 properties possessing mineralisation in a number of different categories.
TomaGold president and CEO David Grondin stated: “Never in its last 75-year history has the Chibougamau Mining Camp been controlled and developed by one operator with a global vision.”
Consolidated into one district-sized land package, the collection of the majority of Chibougamau’s claims into one will allow TomaGold to benefit from economies of scale and the productive efficiencies of centralised production, that will expedite the exploration of the mining claims and subsequent developments.
Grondin added: “This game-changer strategy will allow TomaGold to optimise the allocation of financial, human and technical resources under one roof for exploration, development and potential production.”
TomaGold is primarily an explorer of gold deposits; acquiring, exploring and developing mineral claims before selling to companies that will produce on those claims. With these purchases, the company is diversifying its portfolio. Copper, gold, silver and zinc mineralisations have been measured across Chibougamau’s 20 properties.
Grondin also hinted that the purchase will not only aid TomaGold but companies further down the line that may end up producing on the properties.
He said: “By consolidating these assets, we will also have a better chance of attracting interest from first-tier mining companies looking for large projects to expand their resources, and optimally finance the development of the mining camp through TomaGold.”
It comes at a time when a number of the world’s largest mining companies are investing in Quebec in the search for critical minerals. As minerals mined from Canada will be applicable for benefits from the US Inflation Reduction Act, miners in the area will be looked upon more favourably than global producers when companies consider mineral purchases. As such, TomaGold has purchased a set of properties that may become very valuable in the coming years.
As part of the transaction, TomaGold will pay a combined $13.8m in cash, $10.4m in work commitments and 16,625,000 common shares of the company.
Over the next 2-5 years, TomaGold will also issue a further $1.8m worth of common shares depending on agreements with the selling parties.
Chibougamau Independent Mines is the biggest single benefactor of the purchases, receiving a combined $13.65m for its 12 properties, along with 16 million shares, $1.35m worth of additional shares and $5.6m of work commitments.
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