In order to exercise its option and acquire a 100% interest in the West Block, TomaGold must make cash payments to Chibougamau in an aggregate amount of
Chibougamau will retain a 2% Gross Metals Royalty (“GMR”) on the West Block, as will
Chibougamau is also pleased to announce that TomaGold has received approval of the letter of intent (“LOI”) for a potential sale of the East Block to TomaGold. The East Block is comprised of 127 claims in McKenzie, Obalski, Roy and Lemoine Townships,
Under the LOI exclusivity period, Chibougamau undertakes not to seek to enter discussions or negotiations with any party other than TomaGold regarding the sale of the East Block in consideration for which TomaGold will pay
An indicative term sheet forming part of the LOI provides that if Chibougamau and TomaGold enter into a definitive agreement for the purchase and sale of the East Block, the purchase price will be $11 million in cash payments from TomaGold to Chibougamau over a period of two years, including $5 million upon signing of the definitive agreement, and the issuance by TomaGold to Chibougamau on the closing date of the sale of 10 million common shares at a deemed price of
The LOI also provides that TomaGold will grant a 2% GMR on the East Block to each of Chibougamau and Globex and that TomaGold will have the right to repurchase 0.5% of the 2% GMR held by CIM and Globex, respectively, for
The LOI does not constitute a legally binding contract, offer or promise of sale of the East Block and no assurance can be given by Chibougamau that it will enter into a definitive agreement with TomaGold with respect to the sale of the East Block on the terms and conditions set out above or at all. Any definitive agreement with respect to the sale of the East Block will be subject to regulatory approval, including that of the
TomaGold has received conditional approval from the
Neither the
We Seek Safe Harbour. | CUSIP Number 167101 203 LEI 529900GYUP9EBEF7U709 |
For further information, contact: | |
President & CEO 86, 14th Street | Tel.: 819.797.5242 Fax: 819.797.1470 info@chibougamaumines.com www.chibougamaumines.com |
Forward Looking Statements
Except for historical information, this News Release may contain certain “forward looking statements”, including statements with respect to the option granted on the West Block property and the letter of intent for a potential sale of the East Block property. These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the Company’s expectations and projections. A more detailed discussion of the risks is available under “disclaimer” on the Company’s website.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f084c760-887b-486c-96ba-bedfbbba76c5
Geological Map of Chibougamau Area with Land Holdings
Chibougamau Independent Mines Inc.
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