IAMGOLD Corporation to Initiate Drilling on the Nelligan Project
Dec 3 14
The management of Vanstar Mining Resources Inc. announced that its partner IAMGOLD Corporation will initiate in the coming days a 1,700 diamond drill hole program on the Nelligan project. This program is intended primarily to verify the lateral and depth extensions of Liam gold zone, discovered in 2013 by the company. IAMGOLD initiated the current exploration program pursuant to the Earn-In Agreement with Vanstar. IAMGOLD may earn a 50% undivided interest in the Nelligan Project by completing scheduled cash payments and exploration expenditures totaling CAD 4.55 million over four and a half years ending on May 12, 2019. This program will cover a portion of the first commitment to spend $400,000 before November 12, 2015.
IAMGOLD Corp. Presents at Retail Investor Conference, Dec-04-2014 09:15 AM
Dec 1 14
IAMGOLD Corp. Presents at Retail Investor Conference, Dec-04-2014 09:15 AM. Speakers: Bob Tait, Vice President of Investor Relations.
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.