|By Marketwired .||
|May 5, 2014 12:19 PM EDT||
MONTREAL, QUEBEC -- (Marketwired) -- 05/05/14 -- TomaGold Corporation (TSX VENTURE: LOT) ("TomaGold" or the "Company") is pleased to announce that two institutional firms have exercised the warrants held by them in connection with the private placement announced on December 31, 2013, thus enabling the Company to raise $120,000.
In addition, the Company closed today on an initial $80,000 of a non-brokered private placement for a maximum of $700,000 mainly with Canadian and European institutional investors. The Company expects the second closing to take place on or about May 9, 2014.
The private placement consisted of the issuance of units consisting of one common share and half a warrant, which resulted in the issuance of 500,000 common shares priced at $0.16 per share and 250,000 warrants. Each warrant entitles its holder to purchase one common share of the Company for $0.25 for a period of 24 months after closing. If TomaGold's shares trade at $0.35 or higher for 10 consecutive trading days, warrantholders will have to exercise their warrants or they will be cancelled.
TomaGold will use the proceeds from the private placement and the exercise of warrants to carry out exploration on its properties in Quebec, to fund its planned acquisitions, and for working capital purposes. The shares issued under the private placement are subject to a mandatory resale restriction period of four months and one day.
The private placement is subject to regulatory approval.
About TomaGold Corporation
TomaGold Corporation is a Canadian-based mining exploration company whose primary mission is the acquisition, exploration and development of gold projects in Canada and abroad.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. The statements made in this news release that are not historical facts are "forward-looking statements". Readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results may vary materially from those described in these "forward-looking" statements.
President and Chief Executive Officer