08:47 AM EDT, 05/27/2025 (MT Newswires) -- Canstar Resources ( CSRNF ) said Tuesday it is ramping up critical metals exploration in Newfoundland with the receipt of the initial $500,000 tranche of its previously announced $11.5 million strategic exploration joint venture with VMS Mining Corporation.

According to a statement, the non-dilutive investment positions Canstar to "aggressively" pursue the discovery of new, high-grade polymetallic (copper-zinc-lead-gold-silver) mineralization at its Buchans and Mary March volcanogenic massive sulphide projects, located in one of Canada's "most prolific historic mining camps".

"We have made meaningful progress," said Juan Carlos Giron Jr., President & CEO. "This initial $500,000 investment allows us to ramp up work immediately, without the issue of new share capital, and signals strong commitment from VMSC's leadership and technical team. The Buchans District has hosted some of the world's highest-grade VMS deposits. Our teams believe the project area holds enormous exploration potential based on historic production and current geological indicators."

Under the agreement, VMSC can earn up to 60% ownership of the JV through optional follow-on investments totaling $10 million across Phase 2 and Phase 3. Canstar retains the right to participate pro-rata in future phases to maintain a significant ownership position.

Established to develop Tier 1 VMS deposits globally, VMS Mining Corporation is a technically driven private corporation led by some names in the mining industry, including founders, directors and executives behind Osisko Mining Inc., O3 Mining Inc., Aurelian Resources, and Dalradian Resources-companies with a collective track record of over $4.1 billion in acquisition value.