Business
IAMGOLD Agrees to Sell Its Interest in the Sadiola Gold Mine
(All figures in US dollars unless otherwise indicated.) Toronto, Ontario--(Newsfile Cor...
About this update from Iamgold Corporation
[{"type":"text","content":"IAMGOLD Agrees to Sell Its Interest in the Sadiola Gold Mine(All figures in US dollars unless otherwise indicated.)Toronto, Ontario--(Newsfile Corp. - December 23, 2019) - IAMGOLD Corporation (TSX: IMG) (\"IAMGOLD\" or the \"Company\") announced that the Company, together with our joint venture partner, AngloGold Ashanti Limited (\"AGA\"), has entered into an agreement (the \"Agreement\") to sell our collective interests in Société d'Exploitation des Mines d'Or de Sadiola S.A. (\"SEMOS\") to Allied Gold Corp (\"Allied Gold\"). AGA and IAMGOLD each hold a 41% interest in SEMOS with the remaining 18% interest held by the Government of Mali.Under the terms of the Agreement, IAMGOLD and AGA will sell their collective interests in SEMOS to Allied Gold (the \"Transaction\") for a cash consideration of US$105 million, payable as follows:$50 million ($25 million each to IAMGOLD and AGA) upon the fulfilment or waiver of all conditions precedent and closing of the Transaction (\"Closing\");Up to a further $5 million ($2.5 million each to IAMGOLD and AGA), payable 8 days after Closing, to the extent that the cash balance of SEMOS at Closing is greater than an agreed amount;$25 million ($12.5 million each to IAMGOLD and AGA) upon the production of the first 250,000 ounces from the Sadiola Sulphides Project (\"SSP\"); and$25 million ($12.5 million each to IAMGOLD and AGA) upon the production of a further 250,000 ounces from the SSP.Gord Stothart, President and COO of IAMGOLD, commented, \"This transaction reflects our continuing efforts toward self-funding and focussed capital allocation. The Sadiola mine was the founding asset of IAMGOLD, and we are pleased to have reached this agreement with Allied Gold to secure its long-term future.\"The Transaction is subject to the fulfilment, or waiver, of a number of conditions precedent, including the receipt of certain approvals and releases from the Government of Mali, as well as, in the case of AGA, the approval of the South African Reserve Bank. It is anticipated that all conditions precedent will be fulfilled or waived by the end of April 2020. In addition, upon the fulfilment or waiver of all conditions precedent to the Transaction but immediately prior to Closing, SEMOS will pay a dividend of $15 million pro rata to its shareholders. IMG and AGA will each receive a cash dividen...