BOTSWANA – Toronto-based IamGold has sold its Mupane gold mine in eastern Botswana to Galane Gold, a Toronto-traded junior. In return, IamGold received total consideration of $34.2 million consisting of $12.5 million in cash, $17.9 million in common shares of Galane Gold, and a $3.8 million promissory note payable over three years.
The Mupane mine was discovered in 1998 by Gallery Gold and reached commercial production in 2004. IamGold acquired the mine in 2006 through acquisition of Gallery Gold. The mine produced 57,000 oz of gold in 2010.
Following the sale, IamGold holds 48.5% of Galane, but that may rise to 49.9% if IamGold exercises all its warrants in the next 18 months.
Please see www.IamGold.com.