IAMGOLD Completes $20 Million Private Placement in Orezone
December 31 2008 - 4:07PM
Marketwired
IAMGOLD Corporation ("IAMGOLD") (TSX: IMG)(NYSE: IAG)(BOTSWANA:
IAMGOLD) completed the previously announced purchase on a private
placement basis of 71,428,571 common shares of Orezone Resources
Inc. ("Orezone") at a price of Cdn$0.28 per share for gross
proceeds to Orezone of Cdn$20 million. As a result, IAMGOLD holds
approximately 16.6% of the outstanding shares of Orezone. IAMGOLD
did not hold any securities of Orezone prior to the private
placement.
On December 11, 2008, IAMGOLD and Orezone jointly announced a
business combination. The private placement was completed pursuant
to the definitive arrangement agreement dated December 10, 2008,
whereby IAMGOLD would acquire, via a plan of arrangement, all of
the outstanding common shares of Orezone in a supported, all-share
transaction (the "Transaction"). Total consideration to be provided
to shareholders of Orezone under the Transaction is valued at
approximately US$139 million. Completion of the Transaction is
subject to, among other things, the approval by the shareholders of
Orezone at a special meeting of shareholders of Orezone, and final
court approval. The Transaction is expected to close by the end of
February 2009.
Orezone's main asset is the fully permitted, 4 million ounce
Essakane gold resource, located in Burkina Faso, West Africa.
Construction commenced in September of this year for a mine that
will contribute average gold production of over 300,000 ounces per
year over a minimum nine-year mine life. Average cash operating
cost is estimated at US$358 per ounce, using a $600 per ounce gold
price and $85/bbl oil price. Full production is anticipated in late
2010, requiring a remaining capital expenditure of approximately
US$350 million.
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 on our aggressive growth objectives. IAMGOLD
is focused in West Africa, the Guiana Shield of South America and
in Quebec with a pipeline of development and exploration projects.
IAMGOLD 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 SVP, 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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