IAMGOLD Options Merrex Gold's Siribaya Gold Project in Mali and Confirms Equity Position in Merrex Gold
December 23 2008 - 8:30AM
Marketwired
IAMGOLD Corporation ("IAMGOLD") (TSX: IMG)(NYSE: IAG)(BOTSWANA:
IAMGOLD) has entered into a definitive Option Agreement
("Agreement") to earn a 50% interest in the Siribaya Gold project
in Mali, West Africa, which is 100% controlled by Merrex Gold Inc.
("Merrex") (TSX VENTURE: MXI). IAMGOLD can earn its interest by
spending Cdn$10.5 million over four years. As part of the
Agreement, IAMGOLD completed a private placement of Cdn$1.5 million
in Merrex by subscribing for 4,285,714 units at $0.35 per unit.
Each unit is comprised of one common share of Merrex and one
12-month warrant, exerciseable at $0.45 per share.
As a result, IAMGOLD holds 4,285,714 common shares of Merrex,
representing approximately 6.47% of the outstanding common shares
of Merrex. If IAMGOLD were to exercise all warrants of Merrex,
IAMGOLD would control an aggregate of 8,571,426 common shares of
Merrex, or 12.15% of the resulting outstanding common shares (on a
partially diluted basis).
Other than as agreed to in consideration for the Siribaya
Agreement, IAMGOLD does not have any present intention to acquire
ownership of, or control over, additional securities of Merrex.
The Siribaya gold project consists of a 700 square kilometer
land package in western Mali that covers two major regional
structural trends that hold significant potential for economic gold
mineralization. Merrex has spent over $8.0 million to date on
exploration at Siribaya and has reported significant gold
intersections along a two kilometer segment of an anomalous gold
trend that extends for more than six kilometers within the land
package. In addition, higher grade gold drill intersections from a
breccia-hosted sulphide-gold zone are also a priority target for
further drilling. Merrex also has an established presence in
western Mali and will continue as the initial operator at
Siribaya.
Mike Donnelly, IAMGOLD's Senior VP, Exploration says, "We are
pleased to enter into this arrangement with Merrex. We are excited
by the early results that Merrex has had on both the zones along
the main regional structures, but also by the results from the
breccia zone as these attest to the potential across this large 700
square kilometer property. IAMGOLD has considerable exploration
knowledge and experience in this part of West Africa and we see
good potential to discover a significant gold deposit at
Siribaya."
IAMGOLD's President & CEO, Joseph Conway adds, "With our
recent announcement of the proposed acquisition of Orezone
Resources Inc., with its four million ounce gold deposit under
construction in Burkina Faso, we have firmly established IAMGOLD as
a leading gold company in West Africa. The agreement with Merrex
further advances IAMGOLD's strategy of building the Company's
resource base and production profile in West Africa. Our experience
in West Africa dates back to IAMGOLD's initial discovery and
ongoing involvement in the Sadiola and Yatela gold mines that spans
almost 20 years in Mali alone. About 50% of IAMGOLD's almost one
million ounces of gold production this year is from Africa."
About IAMGOLD
IAMGOLD is a leading mid-tier gold mining company producing
almost one million ounces from 8 mines on 3 continents. IAMGOLD is
focused on growth with a target to reach 1.8 million ounces gold
production by 2012. IAMGOLD is uniquely positioned with a strong
financial base, together with the management and operations
expertise to execute our aggressive growth objectives. IAMGOLD is
focused in West Africa, the Guiana Shield of South America and in
Quebec where it has a pipeline of development and exploration
projects. It continues to assess accretive acquisition
opportunities with a strategic fit. IAMGOLD is listed on the
Toronto Stock Exchange ("IMG"), the New York Stock Exchange ("IAG")
and the Botswana Stock Exchange.
Please note:
This entire press release may be accessed via fax, e-mail,
IAMGOLD's website at www.iamgold.com and through Marketwire's
website at www.marketwire.com. All material information on IAMGOLD
can be found at www.sedar.com or at www.sec.gov.
Si vous desirez obtenir la version francaise de ce communique,
veuillez consulter le http://www.iamgold.com/fr/accueil.html.
Contacts: IAMGOLD Corporation Elaine Ellingham Senior VP,
Investor Relations & Communications (416) 360-4743 or
Toll-free: 1-888-IMG-9999 Email: info@iamgold.com Website:
www.iamgold.com Renmark Financial Communications Inc. John Boidman
(514) 939-3989 (514) 939-3717 (FAX) Email:
jboidman@renmarkfinancial.com Renmark Financial Communications Inc.
Henri Perron (514) 939-3989 (514) 939-3717 (FAX) Email:
hperron@renmarkfinancial.com Website: www.renmarkfinancial.com
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