Canadian Mining Journal

News

GOLD: IamGold seeks US$200M to strengthen balance sheet



TORONTO – IamGold Corp. has entered into an agreement with a syndicate of underwriters who have agreed to purchase 38.85 million IamGold common shares at a price of US$5.15 each, for aggregate gross proceeds of approximately US$200 million. If the over-allotment is exercised in full, the company  will raise another US$30 million.

IamGold plans to use US$150 million of the net proceeds to fund a tender offer for its outstanding 6.75% senior notes. The remainder of the proceeds will fund internal growth projects, including the expansion of the Sadiola gold mine in Mali, a joint venture of IamGold (41%), AngloGold Ashanti (41%), and the government of Mali (18%).

Mining at Sadiola has been by open pit in oxide mineralization to produce roughly 200,000 oz of gold annually. Expansion is contemplated underground in sulphide mineralization.

More information is available at www.IamGold.com.