VMS Ventures Inc. is a well financed, publicly traded mineral exploration company listed on the Toronto Venture Exchange (TSX.V) under the symbol VMS.
VMS Ventures Inc. is focused primarily on acquiring, exploring and developing copper-zinc-gold-silver massive sulphide deposits in the Flin Flon-Snow Lake VMS Belt of Manitoba. The Company's VMS project property portfolio consists of the Reed Copper Project, McClarty Lake Project, Sails Lake Project, Puella Bay Project and Morton Lake Project. Outside of the Snow Lake camp, the Company holds massive sulphide prospective properties near the past producing Fox Lake and Ruttan copper-zinc mines, near the communities of Lynn Lake and Leaf Rapids in northern Manitoba. These properties are located in the mining friendly province of Manitoba, Canada. The Company also has optioned three properties in the Sudbury mining camp. They are Terra Incognita, Golden Pine and Black Creek.
In October, 2007 VMS announced its Reed Lake Discovery Hole intercept of 43.05 metres of 4.38% copper, 1.56% zinc, 0.85 grams per tonne gold and 13.09 grams per tonne silver, including 10 metres of 11.19% copper. 73 holes were drilled through September, 2008 including hole #RD-08-41 which included 33.46 meters of 10.36% Copper, including 18.08 meters of 13.80% copper.
On July 6, 2010, VMS announced a joint venture agreement with Hudbay Minerals (TSX: HBM) to develop the Reed Lake property and the two claims immediately to the south. VMS has a 30% carried interest and HudBay has a 70% interest and will act as the operator of the joint venture. HudBay began drilling at Reed Lake in late August, 2010 and plans a 43-101 resource estimate before the end of Q1 2011 - NI 43-101 MINERAL RESOURCE FOR THE REED LAKE DEPOSIT AT 2.55 MILLION TONNES @ 4.52% COPPER IN THE INDICATED CATEGORY
The Manitoba government has approved the Reed Copper Advanced Exploration Permit ("AEP") closure plan and issued the lease of park land property for the operation of the mine development activities. The AEP allows the extraction of a 10,000 tonne bulk sample and will provide confirmation of the mineralized widths, metal grades and the conditions of the ground. Testing of the extracted bulk sample will be done in the Flin Flon metallurgical complex. Site preparation will begin in Q1 and the decline will commence in the second half of 2012.
VMS Ventures owns approximately 45% of North American Nickel Inc. (TSX VENTURE:NAN)
VMS Ventures Inc. has approved and adopted a shareholder rights plan, which is intended to supercede and replace that plan approved at the company's 2012 annual general meeting.
Shareholder rights plan
The rights plan was not adopted by the board of directors in response to any offer or takeover bid, and is not intended to prevent a takeover bid.
The fundamental objectives of the rights plan are to provide adequate time for the board of directors and shareholders to assess an unsolicited takeover bid for the company; to provide the board of directors with sufficient time to explore and develop alternatives for maximizing shareholder value if a takeover bid is made; and to provide shareholders with an equal opportunity to participate in a takeover bid.
To implement the rights plan, the board of directors authorized the issue of one right to purchase a common share in respect of each common share of the company outstanding to holders of record. One right will also be issued in conjunction with each common share of the company issued while the rights plan is in effect. The rights will be evidenced by certificates for common shares and will not be transferable separately from the common shares.
The rights plan encourages a potential acquirer which makes a takeover bid to proceed either by way of a permitted bid or with the concurrence of the board. A permitted bid is a bid made by way of a takeover bid circular to all holders of the company's common shares, which is open for acceptance for not less than 60 days. If, at end of 60 days, at least 50 per cent of the outstanding shares, other than those owned by the offeror and certain related parties, have been tendered, the offeror may take up and pay for the shares but must extend the bid for a further 10 days to allow other shareholders to tender. If a takeover bid fails to meet these minimum standards of the rights plan and is not waived by the board of directors, each right would, upon exercise, entitle a rightsholder, other than the acquirer and certain related parties of the acquirer, to purchase additional common shares at a significant discount to market, thus exposing the acquirer to a substantial dilution of its holding.
The rights plan remains subject to the approval of the TSX Venture Exchange and to the execution of definitive agreements with the company's transfer agent. The rights plan also remains subject to ratification of the shareholders of the company at the next annual general meeting of the company. If the rights plan is not ratified by the shareholders, the rights plan and any rights will terminate and cease to be effective at that time. If the rights plan is ratified, it will continue in effect until the close of the annual meeting of the shareholders in 2017.
A copy of the rights plan will be available on SEDAR.