IAMGOLD Closes Transaction with Sumitomo Metal Mining Co. to Develop Côté Gold Project in Ontario
TORONTO, June 20, 2017 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") today announced that it has completed the sale of 30% of its interest in the Côté Gold Project to a wholly-owned subsidiary of Sumitomo Metal Mining Co., Ltd. ("Sumitomo") for $195 million, as previously announced on June 5, 2017.
On closing, IAMGOLD received $100 million in cash, with the remaining $95 million payable on the earlier of 18 months following closing, or the date of public filing of a feasibility study with respect to the Côté Gold Project. With the completion of this transaction, the Company's liquidity now exceeds $1 billion.
"Closing a transaction that has unlocked the hidden value of Côté Gold is tremendously exciting," said Steve Letwin, President and CEO of IAMGOLD. "In Sumitomo, we have a partner with a common interest in both advancing the development of Côté and in potentially pursuing future opportunities."
In connection with the sale, IAMGOLD and Sumitomo have entered into a joint venture with respect to the Côté Gold Project, IAMGOLD having 70% and Sumitomo having 30% of the total participating interests in the joint venture.
In connection with this transaction, RCI Capital Group acted as financial advisor and originator of the buy side on behalf of IAMGOLD, Fasken Martineau acted as legal counsel to IAMGOLD, and DLA Piper (Canada) acted as legal counsel to Sumitomo.
About Sumitomo Metal Mining Co., Ltd.
Sumitomo Metal Mining Co., Ltd. is a Japan based company with approximately $7.3 billion in revenue in fiscal year ending March 31, 2017. The Company is primarily focused on the development and mining of non-ferrous metals, and produces and markets copper, gold, nickel, and other precious metals. Sumitomo Metal Mining is listed on the Tokyo Stock Exchange (5713).
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four operating gold mines on three continents. A solid base of strategic assets in North and South America and West Africa is complemented by development and exploration projects and continued assessment of accretive acquisition opportunities. IAMGOLD is in a strong financial position with extensive management and operational expertise.