IAMGOLD – Shares jump 20% from Sale of Bamouk Interests

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IAMGOLD’s (TSX: IMG) (NYSE: IAG) US ticker climbed by 20% premarket after the company agreed to a deal to sell its interests in projects in Mali, Guinea and Senegal (known as Bamouk) to Moroccan mining company Managem for $282 million. They also announced a funding agreement with Sumitomo Metal Mining.

I AM Gold chart – from the company website

Managem operates in six African countries and is controlled by the royal family holding company Al Mada. The company reported a revenue of 7.376 billion dirhams ($700 million) from January to September this year, up from 45% from higher metal prices.

According to the press release Managem will buy shares and subsidiary/intercompany loans for the entities that hold the IAMGOLD’s 90% interest in the Boto Gold Project (“Boto”) in Senegal and 100% interest in each of: the Diakha-Siribaya Gold Project in Mali, Karita Gold Project and associated exploration properties in Guinea, and the early stage exploration properties of Boto West, Senala West, Daorala and the vested interest in the Senala Option Earn-in Joint Venture also in Senegal. The remaining 10% of Boto will continue to be held by the Government of Senegal.

Inclusive of the total consideration is a $30 million deferred payment to be paid out at the earlier of: six months after closing of the Boto Gold Project and associated properties in Senegal, or at a time mutually agreed to by the parties.

Agreement with Sumitomo

Sumitomo will contribute funding amounts to Côté gold project in Ontario, Canada for approximately $340 million over the next year – the agreement begins in January 2023.

• IAMGOLD transfers approx. 10% interest in Côté to Sumitomo
• IAMGOLD pays a repurchase option fee with the right to exercise it between November 30th, 2023, to 2026 to return its 70% interest in the project
• IAMGOLD will remain the operator of the project

Maryse Bélanger, CEO of IAMGOLD commented that the Côté gold project is on track for gold production in early 2024.


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