JOHANNESBURG (miningweekly.com) – Canadian gold miner Iamgold has completed the sale of a 30% interest in the Côté gold project, in Ontario, to a subsidiary of Sumitomo Metal Mining for $195-million.
Iamgold, which still owns the remaining 70% interest in the project, has received $100-million in cash and the balance is payable on the earlier of 18 months following closing, or the date of public filing of a feasibility study with respect to the project.
With the completion of this transaction, Iamgold’s liquidity now exceeds $1-billion.
“Closing a transaction that has unlocked the hidden value of Côté is tremendously exciting. In Sumitomo, we have a partner with a common interest in both advancing the development of Côté and in potentially pursuing future opportunities,” commented Iamgold president and CEO Steve Letwin.