Visionary Copper and Gold Mines Inc. (TSXV: VCG) (OTCQB: VCGMF) has closed the acquisition of a 100% interest in three mineral licenses situated along the down-plunge trend of its Pt. Leamington volcanogenic massive sulphide (VMS) deposit in central Newfoundland. The company paid C$10,000 in cash and issued 27,261 common shares at a deemed price of C$1.46728 per share, representing a deemed value of C$40,000, to vendor Stephen Stockley Agriculture and Fabrication Inc. The transaction also grants the vendor a 1% net smelter return royalty, repurchasable for C$1,000,000. The acquisition adds ground directly adjacent to one of Visionary's primary assets in a region regarded as among Canada's richest VMS and gold districts.

Key Points

  • Visionary Copper and Gold Mines Inc. (TSXV: VCG) (OTCQB: VCGMF)
  • Closed acquisition of three mineral licenses along the down-plunge trend of the Pt. Leamington VMS deposit in central Newfoundland
  • Consideration: C$10,000 cash plus 27,261 shares at C$1.46728 deemed price (deemed value C$40,000); vendor also receives a 1% NSR royalty repurchasable for C$1,000,000; consideration shares subject to a four-month resale restriction
  • Investors may be watching how this ground position relates to the company's existing Indicated and Inferred Mineral Resources at the Point Leamington Deposit

Transaction Terms and Share Consideration for the Pt. Leamington Mineral Licenses

Under the mineral property purchase agreement, Visionary acquired the three licenses from Stephen Stockley Agriculture and Fabrication Inc. for total consideration comprising C$10,000 in cash and 27,261 newly issued common shares valued at a deemed price of C$1.46728 each, equating to a deemed share consideration of C$40,000. The release states that the consideration shares are subject to a four-month resale restriction from the date of issue. The vendor also received a 1% net smelter return royalty on the acquired licenses, with Visionary retaining the right to repurchase that royalty through a one-time payment of C$1,000,000.

Strategic Context: Point Leamington Deposit and Visionary's Newfoundland Portfolio

The Point Leamington Deposit is Visionary's flagship 100%-owned asset, located in a jurisdiction the company describes as one of Canada's richest VMS and gold districts. The company's existing resource estimate includes a pit-constrained Indicated Mineral Resource of 5.0 Mt grading 2.5 g/t AuEq for 402 koz AuEq and a pit-constrained Inferred Mineral Resource of 13.7 Mt grading 2.24 g/t AuEq for 986.5 koz AuEq, among other categories. The newly acquired licenses sit along the down-plunge trend of this deposit, according to the announcement.

Broader Asset Base Across Canadian Mining Districts

Beyond Newfoundland, Visionary holds the Pine Bay Project near Flin Flon, Manitoba, where the Rainbow deposit carries an Indicated Mineral Resource of 3.44 Mt grading 3.59% CuEq for 272.4 Mlb CuEq. The company also holds the Nash Creek Project in New Brunswick's Bathurst Mining District. A 2018 preliminary economic assessment for Nash Creek reported a pre-tax IRR of 34.1% and a pre-tax NPV8% of C$230 million at US$1.25 zinc. These projects together reflect the company's focus on base and precious metals across established Canadian mining jurisdictions.