TomaGold Signs LOI to Acquire Red Metal Resources

TomaGold, V.LOT, gold, ontario

TomaGold Corporation (V.LOT) is pleased to report that is has signed a Letter of Intent to acquire, pursuant to a takeover bid, business combination or similar transaction, all of the issued and outstanding common shares of Red Metal Resources Ltd. (OTCBB: RMES) , namely 34,290,302 common shares, as well as all of the common shares of Red Metal that may be issued upon the exercise of any options, warrants or other convertible securities after the formal filing of the transaction but before its closing . The proposal would be that such Red Metal shareholders will receive in exchange an aggregate consideration of CAD$3,250,000 payable through: (i) the payment in cash of the Red Metal’s debts for a maximum amount of CAD$500,000; and (ii) for the remainder of the aggregate consideration, the issuance of class “A” common shares of the capital stock of TomaGold at a price that is the higher between the average market price over the 20 days before the execution date of the Definitive Agreement and of CAD$0.15, subject to a maximum price of CAD$0.20. The parties to the transaction are at arm’s length. read more

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