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Iamgold (NYSE:IAG) said Tuesday it agreed to acquire Canadian gold exploration company Vanstar Mining Resources (OTCQX:VMNGF) in an all-stock deal valued at ~$31.1M, which it said will consolidate its interests in the highly prospective Nelligan deposit while building its exploration portfolio in northern Quebec.
Vanstar’s (OTCQX:VMNGF) primary asset is a 25% interest in the Nelligan joint venture project held under an earn-in option with Iamgold (IAG), which owns a 75% stake in the JV.
Iamgold (IAG) said it will pay Vanstar (OTCQX:VMNGF) shareholders 0.2008 of a share for each Vanstar share held, and has the option to buy an additional 5% interest in the company by completing and delivering a feasibility study on the Nelligan project.
In January, Iamgold (IAG) announced an updated mineral resource estimate for Nelligan totaling 72.2M metric tons of indicated mineral resources averaging 0.85 g/t of gold for 1.97M oz of gold.