TORONTO (miningweekly.com) – Project developer TomaGold has signed two agreements allowing it to consolidate its position around the Monster Lake property, 44 km south-west of the town of Chibougamau, in north-western Quebec, where it could earn a 50% interest from Iamgold.

The TSX-V-listed explorer on Monday announced that it had finalised an option agreement with Visible Gold Mines through which TomaGold could acquire a 70% interest in the Hazeur property for $230 000, including $5 000 payable in cash on closing and $225 000 in exploration work, as well as by issuing 1.55-million common shares, over a three-year period.

The Hazeur property comprised 61 mineral claims covering 2 863 ha on the southern border of the Monster Lake property. TomaGold would act as the project operator with support from Visible Gold staff during the earn-in period.

TomaGold also revealed that it had acquired a 100% interest in the Monster Island property, previously held by Vanstar Mining Resources, in exchange for a cash payment of $10 000 and 200 000 common shares. Vanstar would also retain a 1.5% net smelter return royalty, of which half could be repurchased for $750 000.

The Monster Island property comprised 21 mineral claims, covering 1 773 ha on the eastern border of TomaGold's Cookie Monster property.

"The addition of the Hazeur and Monster Island properties to our portfolio simply underscores our strong belief in the gold potential of the Monster Lake area. We feel that these projects are promising for the company for the longer term and we were able to acquire them at a reasonable cost [owing] to the difficult market conditions.

“We also think our decision to increase our position in the area, which now stands at 204 contiguous mineral claims covering 10 249 ha, is supported by the exploration results published to date for Monster Lake,” TomaGold president and CEO David Grondin stated.

Meanwhile, TomaGold announced that as a result of refocusing its efforts on Quebec, it had decided to terminate an agreement with Arizona-based Gold Reef Mining, owing to its inability to finance the project.

The Hazeur and Monster Island property transactions were subject to regulatory approval and the common shares being issued after definitive documentation had been signed would be subject to a hold period of four months and one day.