Vanstar Mining Resources Inc. Announces Execution of an Option and Joint Venture Agreement with IAMGOLD Corporation for the Nelligan Gold Project
Nov 17 14
Vanstar Mining Resources Inc. announced the execution of an Option and Joint Venture Agreement with IAMGOLD Corporation for the Nelligan gold project. Under the terms of the Agreement, Vanstar has granted IAMGOLD an option to earn up to an 80% interest in the Project, which is comprised of 92 mining claims and located 45 km south of the village of Chapais in the Province of Quebec. Initially, IAMGOLD has a first option to earn a 50% undivided interest in the Nelligan Project in consideration for: (a) staged cash payments totaling $550,000, and (b) the completion of $4,000,000 in exploration expenditures (the "Expenditures") on the Project over a period of four and a half (4 ½) years ending on May 12, 2019. The Agreement provides for a firm commitment to pay $200,000 in cash payments before November 12, 2015 and complete $900,000 in exploration expenditures before November 12, 2016. Following the exercise of the first option, IAMGOLD can elect a second option to earn an additional 25% undivided interest, to hold a 75% interest in the Project, in consideration for the delivery of a pre-feasibility study and making further annual cash payments totaling $225,000, over a period of three and half (3 ½) years following the exercise of the first option. IAMGOLD can elect a third option to earn an additional 5% undivided interest, to hold a 80% interest in the Project, in consideration for the delivery of a feasibility study and a cash payment of $275,000, at the election of IAMGOLD to pursue and complete the feasibility study following the exercise of the second option. Following this work, Vanstar will retain a 20% net interest, which will be free carried. However, IAMGOLD will have the right to acquire this interest based on an independent valuation once a feasibility study has been completed. Should Vanstar's interest be purchased, Vanstar would retain a 1.5% net smelter return royalty on the Project. In addition to the cash payments outlined above, IAMGOLD will, from the time Vanstar holds a free carried interest, make annual cash payments of $50,000 to Vanstar until such time a production decision is made. The agreement also provides for the formation of a joint venture should IAMGOLD elect not to proceed with either the second or third option which includes provisions related to operatorship, project funding, dilution, conversion of Vanstar's interest to a free carried interest at its election and an interest buyback of the IAMGOLD interest as subject to specified terms and conditions. IAMGOLD is currently finalizing program planning and design for an initial exploration drilling program to be initiated before year end.
Vanstar Mining Resources Inc. Announces the Acquisition of Nine Cells Adjacent to its Nelligan Project
Jul 2 14
Vanstar Mining Resources Inc. announced the acquisition of nine cells adjacent to its Nelligan project, located in the Chapais-Chibougamau mining camp. These cells, covering approximately 460 hectares, were acquired from 2 independent prospectors for $4,000 cash and 80,000 common shares in favor of one of the prospectors and $500 cash for the second one. No royalty have been granted. This acquisition of new cells is subject to the approval of the regulatory authorities.
Vanstar Mining Resources Inc. Announces the Completion of 9 Drill Holes
May 28 14
Vanstar Mining Resources Inc. announced the completion of 9 drill holes for a total of 1,700 meters on the Liam showing. Drill hole LI-14-21 intersected the Liam zone over 19.6 meters at 2.34 g/t Au at a depth along the hole between 171.65 and 191.25 meters. Drill hole LI-14-22 located 50 meters behind, intersected the same zone over 51 meters grading 1.01 g/t Au including 20 meters at 2.28 g/t Au, at depth between 204 and 255 meters along the hole. The goal of this drilling campaign was to test the Liam zone extensions along strike and at depth. The targeted zones were successfully intersected in most of the drill holes over widths ranging from 12 to 50 meters. This drilling phase also uncovered a new gold structure south of the Liam zone: the Dan zone. It was intersected by three drill holes along a 250-meter strike and on widths varying between 6.3 and 31 meters. A third structure was also identified north of the Liam zone. It returned 3.04 g/t Au over 8.4 meters.