IAMGOLD To Repurchase 9.7% Interest In Cote Gold Mine For Estimated $382 Million
IAMGOLD (TSX: IMG) intends to increase its ownership of its Cote Gold project. The company last night indicated it has notified Sumitomo Metal Mining Co, it’s joint venture partner on the project, that it intends to return to its prior 70% ownership of the project by exercising a repurchase right.
The exercise of the repurchase right will see the company obtain an additional 9.7% interest in the company in exchange for a cash payment totaling an estimated $381.6 million, based on recent filings by the company.
The right to repurchase the interest follows a transaction entered into by the two parties back in December 2022, wherein Sumitomo paid $250 million for an additional 9.7% interest as a result of IAMGOLD’s inability to sufficiently fund the project. The repayment figures amounts to the initial $250 million, plus any incremental contributions made and a repurchase option fee.
READ: IAMGOLD Boosts Q2 Gold Production by 55% as Côté Gold Reaches Commercial Milestone
The transaction is slated to close on November 30, upon which IAMGOLD will see its interest in the Cote Gold Project return to 70%.
Commercial production was announced at the Cote mine back in August, when the firm indicated it had achieved 60% of nameplate capacity of 36,000 tonnes per day. 90% throughput is expected to be achieved by the end of the year, with the mine previously guided to produce 220,000 to 290,000 ounces of gold this year. Revised guidance has suggested that production will be on the lower end of that figure.
IAMGOLD last traded at $7.09 on the TSX.
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