IAMGOLD (TSX: IMG) continues to shed non-core assets as it continues to focus on it’s Cote Gold project. The latest transaction has seen the company sell certain Brazil-based interests, including its portion of a joint venture, to Jaguar Mining (TSX: JAG).
The assets sold consists of the Pitangui Project, a greenfield exploration property located in Brazil, as well as its interest in the rarely discussed Acurui Project, a joint venture that was in place with Jaguar. Both assets are based in Brazil’s “Iron Quadrangle,” while being prospective for gold.
The Pitangui Project features a mineral resource estimate from December 2019 that includes 470,000 ounces of indicated gold at 4.39 g/t, as well as 433,000 ounces of inferred gold at 3.78 g/t. jaguar is currently deeming the estimate as being historic due to its lack of involvement previously in the project.
The terms of the transaction will see jaguar issue 6.3 million shares to IAMGOLD for the Pitangui Project as well as its interest in the Acurui Project, with those shares valued at approximately US$9.0 million. A net smelter returns royalty of 1.5% is also to be provided to IAMGOLD, with the first 250,000 ounces of gold produced from Pitangui to have a royalty of $80 per ounce.
READ: IAMGOLD Closes $360 Million Sale Of Rosebel As It Works To Fund Cote Project
IAMGOLD has yet to comment on the sale.
IAMGOLD last traded at $3.46 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
