- Canstar Resources (CSRNF, Financial) has received an initial $500,000 from the $11.5M joint venture with VMS Mining Corporation.
- The joint venture focuses on the Buchans and Mary March VMS projects in Newfoundland, with VMSC able to earn up to 60% ownership.
- Phase 1 includes a $1.5M investment, led by renowned VMS expert Dr. Harold Gibson.
Canstar Resources Inc. (CSRNF) has taken a significant step forward in its critical minerals exploration initiative with the receipt of an initial $500,000 payment from VMS Mining Corporation. This forms part of an $11.5M strategic exploration joint venture aimed at unleashing the potential of the Buchans and Mary March volcanogenic massive sulphide (VMS) projects in Newfoundland, Canada.
Under the terms of the joint venture, VMS Mining Corporation can attain up to 60% ownership through additional investments amounting to $10M over future phases. The first phase of this agreement entails a $1.5M investment for a 10% stake, valuing the projects at $15M pre-money.
The exploration is set to be spearheaded by Dr. Harold Gibson, a highly respected authority in the field of VMS deposits. Initial focus will involve conducting deep IP geophysics, geophysical surveys, mapping, trenching, and advanced 3D data modeling aimed at identifying new mining targets.
Historically, the Buchans District, adjacent to Canstar's properties, has been a prolific mining area, having produced over 16.2 million tonnes of high-grade mineralization including 14.51% zinc, 7.56% lead, 1.33% copper, 122 g/t silver, and 1.37 g/t gold. These historic data points, while not on Canstar claims, underscore the mineral potential in the vicinity.
Canstar retains full ownership of its Golden Baie gold-antimony project, separate from the joint venture initiatives. This strategic collaboration with VMS Mining Corporation positions Canstar Resources to capitalize on the rich mineral endowment of the region, with a goal of fostering new high-grade mineral discoveries.
