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LA PRAIRIE, Quebec, July 30, 2019 (GLOBE NEWSWIRE) — Vanstar Mining Resources Inc. has approved the sale of its Squidbet.Com web and mobile application project for $ 500,000 payable in shares of a company to be formed (Newco) and a royalty equal to 0.5% of all gross revenues that can be generated by this transactional platform.
“The Nelligan project remains a major mining project for the company. Also, to avoid any ambiguity with our current and future shareholders, we believe it is reasonable to refocus our energies around what could become a major gold project in Quebec if not in Canada. That is why we decided to transfer our Squidbet.Com platform project to another company.” mentioned the CEO of the company, Mr. Guy Morissette.
The Company’s management understands that all drilling results from the Nelligan Gold Project, developed in partnership with IAMGOLD Corporation, are significant and remains confident that future results will support this decision. The company expects to publish the results of the last 28 holes from the 2019 winter campaign over the next few weeks and expects to receive the result of a first 43-101 resource estimate of the Renard Zone gold zone during the autumn of 2019.
Newco plans to make a first private financing of 2 M$ which will be used to complete the web platform and the development of the mobile application (IOS and Androïd) within the next 24 months following the completion of the financing. Vanstar could potentially participate in this private financing, according to certain terms and approvals to be received from the Regulatory Authorities.
In a near future, Newco may be listed on a Canadian Stock Exchange and the majority of Newco‘s shares will be redistributed, on certain terms, to Vanstar’s then registered shareholders. A group formed mainly by independent directors of Vanstar will provide for the management of Newco.
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Source: GlobeNewswire (July 30, 2019 – 1:00 PM EDT)
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