Canadian Mining Journal


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.

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