- Vanstar Mining Resources stock (TSXV:VSR) opened with a gain of 42.85 per cent after being acquired by IAMGOLD (TSX:IMG)
- Total consideration of C$45 million values Vanstar at C$0.69 per share, which represents a 74 per cent premium from Friday
- The acquisition adds 5.6 million ounces Au to IAMGOLD’s portfolio, in addition to numerous early-stage projects with attractive drilling results
- Vanstar Mining Resources stock (TSXV:VSR) is up by more than 130 per cent year-over-year and by more than 441 per cent since 2018
Vanstar Mining Resources stock (TSXV:VSR) opened with a gain of 42.85 per cent after being acquired by IAMGOLD (TSX:IMG).
Total consideration of C$45 million values Vanstar at C$0.69 per share, which represents a 74 per cent premium to the 20-day volume-weighted average price of Vanstar shares as of Friday. Vanstar shareholders will receive 0.2008 IAMGOLD shares for each Vanstar share held.
IAMGOLD adds Vanstar’s collection of prospective Quebec-based properties, including:
- 25 per cent of the Nelligan project (2 million indicated ounces and 3.6 million inferred ounces Au, NI 43-101 February 2023) and a 1 per cent net smelter return royalty
- Up to 75 per cent of the Bousquet-Odyno project, with 2022 drilling highlighted by 21 m grading 5.23 g/t Au, including 10.5 m grading 10.14 g/t Au
- 100 per cent of the Felix property, the Amanda property (7,306 ha with historic gold showings up to 12.1 g/t Au over 3 m), and the Frida and Eva properties
The transaction is subject to the approval of the TSX, TSXV and the Superior Court of Quebec and requires approval of at least two-thirds of Vanstar shareholders and more than 50 per cent of votes cast by disinterested Vanstar shareholders.
A shareholder meeting is expected in January, after which the parties intend to close the transaction. IAMGOLD will replace the entire Vanstar executive team upon closing.
“This transaction provides a meaningful premium to our shareholders and the opportunity to continue to benefit as part of an established gold producer with a meaningful growth pipeline, including participation in the ramp up of Côté Gold,” JC St-Amour, president and CEO of Vanstar Mining Resources, said in a statement. “Having considered the landscape, we are convinced that combining forces with IAMGOLD will unlock significant value for our shareholders. Today represents a significant milestone for all Vanstar stakeholders and I would like to thank them for their support over the years.”
IAMGOLD is an intermediate gold producer and developer with operating mines in North America and West Africa. The company’s flagship Côté Gold project in Ontario in partnership with Sumitomo Metal Mining is expected to begin production in Q1 2024 with proven and probable reserves of more than 7 million ounces Au.
IAMGOLD stock (TSX:IMG) is down by 2.35 per cent, trading at C$3.33 per share as of 9:48 am ET. Shares are up by about 17 per cent year-over-year and down by approximately 23 per cent since 2018.
Vanstar Mining Resources stock (TSXV:VSR) is up by 42.85 per cent, trading at C$0.65 per share as of 9:40 am ET. The stock is up by more than 130 per cent year-over-year and by more than 441 per cent since 2018.
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