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Canstar Resources, Adventus Zinc and Altius Minerals Announce the Consolidation of Newfoundland Zinc Exploration Projects, Focused on the Buchans Camp
TORONTO, Feb. 21, 2018 (GLOBE NEWSWIRE) -- Canstar Resources Ltd. ("Canstar") (TSX-V:ROX), Adventus Zinc Corporation (“Adventus”) (TSX-V:ADZN) and Altius Minera
About this update from Canstar Resources Inc.
[{"type":"text","content":" TORONTO, Feb. 21, 2018 (GLOBE NEWSWIRE) -- Canstar Resources Ltd. (\"Canstar\") (TSX-V:ROX), Adventus Zinc Corporation (“Adventus”) (TSX-V:ADZN) and Altius Minerals Limited (“Altius”) (TSX:ALS) are pleased to announce that they have entered into a three-way definitive agreement (the “Transaction”) dated February 20, 2018 whereby Canstar will acquire the Newfoundland base metal exploration assets of Adventus and the Daniel's Harbour Zinc Project from Altius in exchange for: (i) the issuance of common shares of Canstar to Adventus and Altius; and (ii) a funding commitment from Altius of $500,000 as part of a $750,000 private placement (as further described below). The Transaction will allow Canstar to consolidate the majority of the Buchans Camp and adds three high quality Newfoundland zinc exploration projects to Canstar’s portfolio. Upon closing of the Transaction (the “Closing”), Canstar’s Newfoundland exploration team will initiate a comprehensive 2018 exploration program focused on the Buchans Camp, with a minimum 3,000 m of diamond drilling campaign anticipated in 2018 to be completed in phases (with full details of this program to follow from Canstar upon Closing). Following the Closing, Canstar will focus its attention on polymetallic exploration in Newfoundland, in particular the Buchans Camp, where it will own the majority of the district’s mineral rights. The Buchans Mine was one of the highest-grade polymetallic mines globally, producing a historical 16.2 million tonnes averaging approximately 14.50% Zn, 7.56% Pb, 1.33% Cu, 126 g/t Ag and 1.37 g/t Au over its 56-year mine life (Kirkham, 1986). The southeast corner of the region also hosted Teck Resources Limited's Duck Pond Mine, which operated between 2007 and 2015 with an initial reserve of 4.08 million tonnes averaging approximately 3.3% Cu, 5.7% Zn, 59 g/t Ag and 0.86 g/t Au (Guy Belleau & Petr Pelz, 2005). The Duck Pond 1,800 tpd flotation mill is currently on care and maintenance. Highlights of Canstar Assets The Mary March Project, located 20 km east of Buchans and next to a provincial highway, which is a joint venture between Canstar (56%) and Glencore (44%). Canstar has first right-of-refusal to acquire the remaining interest from Glencore; and In 1999 and 2000, previous owners Phelps Dodge intersected 10.33% Zn, 118.1g/t Ag, 1.62% P...