Iamgold gets regulatory nod to close $500m Niobec sale
TORONTO (miningweekly.com) – Canadian gold miner Iamgold has received the regulatory approvals required to close the $500-million cash sale of its Niobec niobium mine, in Quebec, to a group of companies led by Magris Resources, the investment company founded by former Barrick Gold CEO Aaron Regent.
Iamgold said on Friday that with the approvals in place, the deal was expected to close before the end of the month.
Niobec, located in Saint-Honoré-de-Chicoutimi, in the Saguenay-Lac-Saint-Jean region, was considered one of the world's three significant niobium producers. The deal would include the adjacent rare earth element (REE) deposit.
The price tag of $530-million for the transaction comprised a cash payment of $500-million payable on closing, as well as $30-million payable when the REE deposit had gone into commercial production. A 2% gross proceeds royalty would be payable on any REE output.
"We are taking the steps to change the game at Iamgold. The company's financial position is stronger than many of its competitors as a result of this sale. By unlocking the value of Niobec, we have significantly strengthened the company's liquidity, which increases our capacity to invest further in our existing business and consider acquisitions,” Iamgold president and CEO Steve Letwin said.
Executive VP and CFO Carol Banducci added that Iamgold would invest strategically, seeking out only opportunities that would improve the company’s cost structure and that would have near-term capability to produce gold and generate positive cash flow.
Following the transaction, Iamgold would have liquid assets of more than $800-million, excluding about $500-million available in unused credit facilities.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
