IAMGOLD Decided to Sell 95% Stake in Rosebel Gold Mines

SEATTLE (Scrap Monster): IAMGOLD Corporation announced that it has entered into a definitive agreement with Chinese Zijin Mining Group Co. to sell its 95% interest in Rosebel Gold Mines N.V. located in the mineral rich Brokopondo district in north eastern Suriname for a cash consideration of $360 million. The transaction also comprises release of its $41 million worth equipment lease liabilities.

As per the terms of the agreement, IAMGOLD will receive the sum of $360 million, subject to certain working capital adjustments upon closing. The obligations on equipment leases will also be released upon closing of the transaction.

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The company press release noted that the royalty on Rosebel currently held by Euro Resources S.A will continue to remain as its obligation. Also, the balance 5% stake will continue to be held by the Government of Suriname.

Maryse Belanger, Interim President and CEO, IAMGOLD noted that the proceeds of the sale will be invested in the construction of its flagship Cote Gold project. The transaction represents a significant step forward in pursuing the strategy to focus on core assets.

The transaction is expected to close on or before the initial quarter of 2023, subject to certain regulatory approvals, including approval from relevant Chinese authorities, transfer of licenses from the Government of Suriname, in addition to other customary closing conditions.