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Vanstar Mining Resources Inc. VMNGF


Primary Symbol: V.VSR

Vanstar Mining’s Nelligan gold project joint venture with IAMGOLD (25% VSR/75% IMG), located 60 kilometres SW of Chibougamau, Quebec. Vanstar retains 25% undivided non-contributory carried interest until commercial production. Nelligan is one of Quebec’s largest gold projects containing approximately 5.6 Moz of gold. Vanstar has signed an LOI with IAMGOLD to acquire a 75% interest in their Bousquet-Odyno property. The project is 6km from IAMGOLD’S Westwood mine.


TSXV:VSR - Post by User

Comment by 1dollarinto2on Dec 14, 2023 2:21pm
136 Views
Post# 35785099

RE:RE:VMNGF

RE:RE:VMNGFThe potential for it to become a joint venture with Vanstar owning 25% and participating in costs rather than 20% and having no costs isn't new or surprising. The issue for a junior like VSR is how to raise their share of the costs without diluting at a low price. I've seen companies partner up with a competitor of the main partner in situations like these to avoid dilution, help pay for the costs, and for the competitor to get their foot in the door on the project.

The competitor, say just as an example, Agnico Eagle, then can get a better understanding of everything before deciding on an offer for the rest of Vanstar's share as well as considering making an offer for IMG's share or IMG in its entirety.

For larger companies, public or private, accessing funds at a reasonable cost is much easier than it is for a junior like VSR, so VSR basically gives the 5% of the project to one of these partners to pay for the cost without VSR needing to dilute instead of IMG getting the 5%.
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