NORTHWEST TERRITORIES – IamGold Corp. of Toronto is selling its 1% gross proceeds royalty that includes the Diavik diamond mine near Lac de Gras to Sandstorm Gold of Vancouver. The Diavik mine is owned 40% by Dominion Diamond and 60% by a subsidiary of Rio Tinto.
Sandstorm is offering US$56.8 million, comprised of US$52.5 million in cash and 3.0 million five-year warrants that may be exercised for US$4.50 each when production begins from the A21 pipe at Diavik.
IamGold (IamGold.com) is bulking up its treasury through this deal and the recent sale of its Niobec niobium mine in Quebec to Magris Resources, led by former Barrick CEO Aaron Regent.
Sandstorm (SandstormGold.com) has built its business model around the acquisition of numerous metal streams and royalties.