Mining at Sadiola Credit: Iamgold
MALI – Canadian gold producer Iamgold has announced that it has entered into an agreement to sell its 41% interest in the Sadiola joint venture to Australian-based Allied Gold for total consideration of up to US$52.5 million in cash.
Under the terms of the agreement, US$25 million is payable to Iamgold upon closing with a further US$2.5 million payable eight days after closing as long as the Malian subsidiary’s cash balance exceeds an agreed upon amount. An additional US$12.5 million is payable upon production of the first 250,000 oz. of gold from the Sadiola sulphides project with a final US$12.5 million due upon production of a further 250,000 oz. from this project.
AngloGold Ashanti, the company’s joint venture partner, also holds a 41% share in the project and has agreed to the same terms, setting the total cash consideration at up to US$105 million for the 82% stake.
The government of Mali will retain its 18% interest.
“This transaction reflects our continuing efforts toward self-funding and focused capital allocation. The Sadiola mine was the founding asset of Iamgold and we are pleased to have reached this agreement with Allied Gold to secure its long-term future,” Gord Stothart, the company’s president and COO said in the release.
Iamgold’s 2019 attributable production from this asset is estimated at 50,000 oz. to 55,000 oz of gold. The plant at the site was designed for processing of oxide material; it is currently expected to cease processing of stockpiled oxide ore by year-end. An expansion of the operation would allow mining of the harder underlying sulphides.
AngloGold is currently the project operator.
For more information, visit www.Iamgold.com.