Canstar Enters into Binding Letter of Intent for Golden Baie Transaction, Securing Cash, Equity, Royalty and $5M in Work Commitments to Accelerate Gold-Antimony Exploration in Newfoundland

The most recent news (February 17, 2026) announces a binding Letter of Intent (LOI) to option the Golden Baie project to Churchill Resources Inc. (CRI). Under the terms, CRI can earn 100% interest by providing Canstar with up to 9.99% equity ownership in CRI, a 0.5% perpetual NSR royalty, and $208,167 in cash reimbursements. Crucially, CRI assumes $5 million in work commitments ($2 million in the first year) and eliminates approximately $600,000 in 2026 holding obligations previously weighing on Canstar. This allows Canstar to focus exclusively on its Mary March and Buchans VMS projects, supported by a separate $11.5 million joint venture with VMS Mining Corporation.

• Financial De-risking: The transaction is materially positive as it removes $600,000 in mandatory holding costs for 2026, a significant sum given the company’s reported cash position of $146,380 as of September 30, 2025.
• Strategic Focus: By offloading the gold-antimony exploration risk to CRI, Canstar transitions into a more focused explorer of high-grade VMS targets in the Buchans district.
• Asset Monetization: The receipt of equity in CRI and a perpetual royalty ensures Canstar retains upside to Golden Baie without the associated capital expenditure.
• Treasury Boost: The $208,167 cash reimbursement and the expected $800,000 in "hard dollar benefits" mentioned by the CEO provide immediate liquidity without further shareholder dilution.

Canstar Resources is a Canadian explorer focused on Newfoundland. Its flagship project is the Mary March VMS project, located 20km from the historic Buchans Mine (which produced 16.2Mt at world-class grades). Mary March has yielded high-grade intercepts, including 9.63m of 10.1% Zinc and 4.2 g/t Gold. The company uses AI-enhanced targeting via TerraAI to optimize drill sites.