TOMAGOLD completes first tranche of private placement for $854,000

TOMAGOLD Corporation (TSXV: LOT; OTCPK: TOGOF) completed the first tranche of its private placement, raising $853,970. The company issued 10,483,333 hard cash units at $0.06 per unit and 2,999,600 flow-through units at $0.075 per unit.

The placement included strategic investments from SIDEX Limited Partnership and NQ Investissement Minier. Each hard cash unit consists of one common share and half of a share purchase warrant, with warrants exercisable at $0.10 for 24 months. Flow-through units include one flow-through share and half a warrant with the same terms.

TOMAGOLD paid $3,673 in finder's fees and issued 68,976 compensation warrants exercisable at $0.10 for 24 months. The company plans to use flow-through proceeds for Canadian exploration expenses qualifying as flow-through critical mineral mining expenditures. Hard cash unit proceeds will fund general corporate purposes.

David Grondin, President and CEO, stated: "We are pleased to welcome SIDEX and NQIM as strategic investors in TomaGold. Their support underscores the strong exploration potential of our Berrigan Mine project, currently in Phase 2 of drilling."

SIDEX is a Quebec government and Fonds de solidarité FTQ initiative that invests in mineral exploration companies in Quebec. NQIM is a regional investment fund based in Matagami focused on Northern Quebec mining development.

The securities are subject to a four-month and one-day hold period. The private placement requires final approval from the TSX Venture Exchange.

TOMAGOLD is a junior mining company focused on precious and base metal projects in Quebec and Ontario, with core assets in the Chibougamau Mining Camp.

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