Quinto Real Capital Corporation is pleased to announce to its shareholders the agreement reached between IAMGOLD Corporation and TomaGold Corporation. Under the terms of the new agreement, IAMGOLD will acquire a 50% interest in the Monster Lake project, which comprises the Monster Lake, Winchester and Lac-à-l'Eau-Jaune properties, in exchange for a $3.22 million cash payment to TomaGold, of which $322,000 will be paid to Quinto Real at the closing of the transaction.
"Quinto Real is not surprised and is very pleased by the turn of events with the purchase transaction of IAMGold. There is evidence that the properties of which we now own 5% are highly promising," explained Mr. Michael Curtis, President of Quinto Real.
IAMGOLD will also have an option to acquire an additional 25% interest by spending $10 million in exploration work over a 7-year period, with a minimum of $500,000 to be spent each year. The effective starting date for the exploration work commitment will be January 1, 2015.
Upon IAMGOLD earning a 75% interest in the Monster Lake project, TomaGold and Quinto Real will have the option to fund their pro-rata share of exploration expenditures to keep its interest in the project, subject to a dilution clause if the Company is unable to fund its share of exploration expenditures. If TomaGold and Quinto Real are diluted to a 10% interest in the project, their ownership interest will be converted to a 1.5% NSR with a buyback provision. IAMGOLD would then have the possibility to buy back a 0.75% NSR for $2 million and the payment for the remaining 0.75% NSR would be capped at $8 million.
The agreement also includes two future success-based contingent payments based on specific milestones, which are IAMGOLD's decision to build a mine and the beginning of commercial production. For each of these milestones, IAMGOLD would pay an additional $1 million to TomaGold of which $200,000 in global potential to Quinto Real in cash or common shares of IAMGOLD, at IAMGOLD's discretion.