TORONTO (miningweekly.com) – Canadian gold-miner Iamgold will sell shares to raise about C$275-million, to fund the development of its Essakane project, in Burkina Faso, the firm said on Monday.

The cash raised will also go towards capital expenditure at Iamgold's other properties, and for “general corporate purposes, including future acquisition opportunities”.

The funds raised will replace all or most of the project debt facility that the firm had planned to secure for the Essakane project, which would have included commitments to hedge gold sales.

Iamgold bought the project last month, when it acquired Canadian junior Orezone Resources.

CEO Joseph Conway said at the time that the company expected to spend about $220-million this year on Essakane, which is scheduled to start production in late 2010.

The offering will be underwritten by a syndicate co-led by Canaccord Capital and TD Securities, which will also be given an overallotment option to buy additional shares representing 15% of the offering.

If the overallotment option is exercised in full, the total gross proceeds to Iamgold will be approximately C$316,25-million.

The offering will be priced in the context of the market, with the final terms to be determined at the time of pricing.

Iamgold joins several of its peers which have already announced or completed equity fundraisings over the last three or four months.

Companies like Newmont Mining, Kinross Gold, Yanama Gold and fast-growing Agnico-Eagle Mines have all managed to successfully access equity markets to fund project development or acquisitions, or to pay down debt.

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