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IAMGOLD Announces Transaction with Sumitomo Metal Mining to Provide up to $340 Million in Additional Funding for the Construction of the Côté Gold Project
All monetary amounts are expressed in U.S. dollars, unless otherwise indicated. Toronto, Ontario--(Newsfile Corp. - December 19, 2022) - IAMGOLD Corporation (TS
About this update from Iamgold Corporation
[{"type":"text","content":" All monetary amounts are expressed in U.S. dollars, unless otherwise indicated. Toronto, Ontario--(Newsfile Corp. - December 19, 2022) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) (\"IAMGOLD\" or the \"Company\") is pleased to announce that it has reached an agreement (\"Agreement\") to amend the Côté Gold Joint Venture Agreement (\"JVA\") with Sumitomo Metal Mining Co., Ltd. and SMM Gold Cote Inc. (\"Sumitomo\" or \"SMM\"). Under the Agreement, commencing in January 2023, Sumitomo will contribute certain of IAMGOLD's funding amounts to the Côté Gold Project (\"Côté\" or \"the project\") that in aggregate are expected to total approximately $340 million over the course of 2023. As a result of Sumitomo funding such amounts, IAMGOLD will transfer, in aggregate, an approximate 10% interest in Côté to SMM (the \"Transferred Interests\") as funding is made by SMM, subject to the right for IAMGOLD to repurchase the Transferred Interests pursuant to the terms of the Agreement (the \"Repurchase Option\"). IAMGOLD will pay a repurchase option fee to SMM on the terms set forth in the Agreement, and IAMGOLD shall have the right to exercise the Repurchase Option on seven dates between November 30, 2023 and November 30, 2026, to return to its full 70% interest in the Côté Gold Project. IAMGOLD may exercise its option through the payment of the aggregate amounts advanced by Sumitomo in respect of the Transferred Interests, subject to certain adjustments as set out in the Agreement relating to the period between initial gold production and commercial production. Such terms are discussed further below and set out in detail in the Agreement. IAMGOLD will remain the operator of the Côté Gold Project. \"The financial support of Sumitomo demonstrates to all of our stakeholders the strong validation of the Côté Gold Project from our partner and our alignment to complete construction and commence production,\" said Maryse Bélanger, Chair and interim President and CEO of IAMGOLD. \"On behalf of the Board and IAMGOLD, I want to thank Sumitomo for their continued support and dedication as together we continue to build what will be Canada's third largest gold mine by production.\" \"The Côté Gold project remains on track for gold production in early 2024, in line with the updated schedule and cost to complete as outlined on our most recent project updat...