TORONTO – IamGold Corp. is going back to being a pure gold play with the sale of its Niobec niobium mine and mill to a consortium headed by Aaron Regent. The mine, located in Saint Honore de Chicoutimi, QC, is one of only three primary niobium producers in the world.
IamGold will net $530 million from the sale that includes the Niobec property plus an adjacent rare earth element deposit. Upon closing, the company will receive $500 million for Niobec, and when the adjacent deposit goes into production, the remaining $30 million will be paid. IamGold retrains a 2% gross proceeds royalty payable on the REE production. The deal is to close by the end of this year, subject to customary conditions.
Former Barrick CEO Aaron Regent is heading the consortium behind the purchase. His Magris Resources (MagrisResources.com) has partnered with Singapore-based Temasek, and CEF Holdings of Hong Kong. CEF is owned 50% by Cheung Kong (Holdings) and 50% by the Canadian Imperial Bank of Commerce.
In August 2014, Niobec’s underground maintenance team completed 10 years of work without a lot time accident. Learn more at Niobec.com.