Shares of Vanstar Mining surged by 38.5% to C$0.63 apiece by 12:15 p.m. EDT on the news, giving the Canadian gold junior a market capitalization of C$36.3 million.
“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,” Vanstar’s CEO JC St-Amour said in a news release.
Vanstar currently holds various gold exploration projects at different stages of development. Its primary asset is a 25% interest in the Nelligan joint venture project, which is held under an earn-in option with IAMGOLD and located 60 km southwest of Chibougamau, Quebec.
An updated mineral resource estimate released January 2023 for Nelligan showed 72.2 million tonnes of averaging 0.85 gram per tonne (g/t) gold for 1.97 million oz. of gold in the indicated category, and 114.1…
