- IAMGOLD (TSX:IMG) is following up its C$45 million acquisition of Vanstar Mining with a 14.48 per cent equity position in Blue Thunder Mining (TSXV:BLUE)
- IAMGOLD invested C$500,000 into Blue Thunder, granting it exposure to the company’s 25,250-ha Muus gold project in Quebec, which is on strike with five established gold resources
- IAMGOLD is an intermediate gold producer and developer with operating mines in North America and West Africa
- IAMGOLD stock (TSX:IMG) is up by approximately 9 per cent year-over-year, but has lost about 30 per cent since 2018
IAMGOLD invested C$500,000 into Blue Thunder through the purchase of 7,142,857 common shares priced at C$0.07 each as part of a non-brokered private placement. BLUE shares are up by 14.28 per cent on the news, trading at C$0.08 per share as of 9:51 am ET.
As per the investor rights agreement between the companies, IAMGOLD has the right to nominate one director to Blue Thunder’s board and to participate in future financings as long as it continues to own at least 10 per cent of the company’s shares. IAMGOLD has also agreed to hold the private placement shares for at least one year after closing.
IAMGOLD’s insider position adds exposure to Blue Thunder’s prospective land position near Chibougamau, Quebec. This includes:
- The 25,250-ha Muus gold project, which is prospective for gold and copper, and on strike with IAMGOLD’s 5 million ounce Nelligan gold project, as well as four other sizeable and established gold resources
- Muus’ Fancamp property, which is host to a 2 kilometre, 30-100 metre wide zone of subparallel <1 m to 5 m wide gold mineralized structures and veins
“IAMGOLD’s in-depth knowledge of the district will be invaluable in advancing our exploration efforts at Muus, as well as on other projects that may be acquired in due course,” Dorian L. Nicol, CEO of Blue Thunder Mining, said in a statement. “We also take this opportunity to congratulate IAMGOLD and Vanstar Mining on their recent announcement that IAMGOLD is acquiring Vanstar and thereby will own 100 per cent of the Nelligan project.”
IAMGOLD is an intermediate gold producer and developer with operating mines in North America and West Africa. The company’s flagship Côté Gold project in Ontario in partnership with Sumitomo Metal Mining is expected to begin production in Q1 2024 with proven and probable reserves of more than 7 million ounces Au.
IAMGOLD stock (TSX:IMG) is down by 2.15 per cent trading at C$3.18 per share as of 9:56 am ET. The stock is up by approximately 9 per cent year-over-year, but has lost about 30 per cent since 2018.
Join the discussion: Find out what everybody’s saying about these Canadian mining stocks on the Blue Thunder Mining and IAMGOLD Bullboards, and check out the rest of Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.