Vanstar executed an option and joint venture agreement with Iamgold that allows the latter company to earn up to an 80% interest in the Nelligan project, which contains 92 mining claims and is located south of the village of Chapais in Quebec.
Iamgold has a first option to earn 50% undivided interest in the Nelligan project, a second option for an additional 25% and a third option for a final 5% for a total of 80% interest.
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"We are very pleased to have reached an agreement with an experienced partner such as Iamgold," said Vanstar president Guy Morissette in a statement. "We are now assured, despite a difficult mining context, of the further development of the Nelligan project, and we all hope that it becomes a major project over the next few years."
Separately, TheStreet Ratings team rates IAMGOLD CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate IAMGOLD CORP (IAG) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself."