Business
IAMGOLD Completes Sale of Its Interest in the Sadiola Gold Mine
All amounts are in US dollars, unless otherwise indicated. Toronto, Ontario--(Newsfile Corp....
About this update from Iamgold Corporation
[{"type":"text","content":"IAMGOLD Completes Sale of Its Interest in the Sadiola Gold MineAll amounts are in US dollars, unless otherwise indicated.Toronto, Ontario--(Newsfile Corp. - December 30, 2020) - IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) (\"IAMGOLD\" or the \"Company\") announces that the Company, together with joint venture partner, AngloGold Ashanti Limited (\"AGA\"), have completed the previously announced sale (see news release dated December 23, 2019) of our collective interests in Société d'Exploitation des Mines d'Or de Sadiola S.A. (\"SEMOS\") to Allied Gold Corp (\"Allied Gold\") (the \"Transaction\"). SEMOS' principal asset is the Sadiola Gold Mine, located in the Kayes region of Western Mali.Prior to the completion of the Transaction (\"Completion\"), IAMGOLD and AGA each held a 41% interest in SEMOS with the remaining 18% interest held by the Republic of Mali (the \"Republic of Mali\"). Pursuant to the Transaction and immediately prior to Completion, the Republic of Mali acquired a further 2% interest in SEMOS (1% each from IAMGOLD and AGA) (the \"Republic Transaction\"). Consequently, upon Completion, IAMGOLD and AGA each sold a 40% interest in SEMOS to Allied Gold.Immediately prior to the Republic Transaction, a dividend of $20 million was declared and paid by SEMOS pro-rata to its shareholders. IAMGOLD and AGA each received a cash dividend of $8.2 million and the Republic of Mali received a cash dividend of $3.6 million.Upon Completion, IAMGOLD and AGA received $50 million ($25 million each to IAMGOLD and AGA) from Allied Gold and the Republic of Mali. In addition, within three business days of Completion, IAMGOLD and AGA will receive agreed additional consideration of approximately $3.6 million (approximately $1.8 million each to IAMGOLD and AGA) based upon the amount by which the cash balance of SEMOS at April 30, 2020 was greater than the amount agreed pursuant to the Transaction agreement entered into by IAMGOLD and AGA with Allied Gold in December 2019.Following Completion, IAMGOLD and AGA remain entitled to the following deferred consideration:$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\"); $25 million ($12.5 million each to IAMGOLD and AGA) upon the production of a further 250,000 ounces from the SSP; and$2.5 million ...