All amounts are expressed in Canadian dollars, unless
otherwise indicated
TSX: IMG NYSE: IAG
TORONTO, June 21, 2012 /PRNewswire/ - IAMGOLD Corporation
(TSX:IMG NYSE: IAG) ("IAMGOLD" or "the Company") and
Trelawney Mining and Exploration Inc. (TSX Venture:TRR)
("Trelawney") announced that on June 21,
2012, IAMGOLD completed the acquisition of all of the issued
and outstanding common shares of Trelawney through a plan of
arrangement (the "Transaction"). Under the terms of the
Transaction, former shareholders of Trelawney are entitled to
$3.30 in cash for each common share
of Trelawney held. It is expected that the common shares of
Trelawney will be delisted from the TSX Venture Exchange on or
about June 25, 2012. The main asset
acquired in this transaction is the Côté Lake Project located
adjacent to the Swayze Greenstone Belt in northern Ontario, Canada.
Stephen Letwin, President and
Chief Executive Officer of IAMGOLD, said, "With this transaction
complete we can now capitalize on the thousands of hours we spent
over the last year evaluating this project and can leverage our
developmental and operational expertise to realize the shareholder
return potential identified by our analysis. The Côté Lake
Project adds immediately to our mineral resources, strengthens our
five-year production growth forecast and has a construction
timetable that dovetails into our capital plans for expanding our
existing operations. Côté Lake also rebalances our resource
and potential production portfolios to having a higher percentage
of assets in North America and a
higher percentage of assets that we own and operate."
Trelawney's President and Chief Executive Officer Greg Gibson said, "Trelawney's employees have
accomplished something special in the discovery of Côté Lake. I
would like to thank Trelawney's board of directors and everyone
involved for their hard work and dedication during the past three
years. I would also like to thank our shareholders for their
backing and support. I wish IAMGOLD all the best moving the project
into the next phase; it is in good hands."
Gordon Stothart, Executive Vice
President and Chief Operating Officer of IAMGOLD, stated, "Since
the announcement of this acquisition, we have met several times
with the Trelawney team and are already well advanced on our
transition planning. We have also held positive meetings with
the First Nations' People in the Côté Lake region and intend to
build upon the excellent work initiated by Trelawney."
On February 24, 2012, Trelawney
announced an updated mineral resource estimate for Côté Lake,
comprising 35 million tonnes at 0.82 g/t gold for 0.93 million
ounces of indicated resources and 204 million tonnes at 0.91 g/t
gold for 5.94 million ounces of inferred resources. Mineralization
at Côté Lake has been intersected over a strike length of 1,200
metres, a horizontal width of 100 - 300 metres and a depth extent
of more than 500 metres1.
"The next steps for this project include the preparation of a NI
43-101 technical report by mid-October
2012, which should encompass infill drilling results up to
and including early July 2012," added
Mr. Stothart. "We expect to begin a pre-feasibility study for
this project by the fourth quarter of 2012."
Footnotes
1 Trelawney mineral resource on a 100% basis, based
on current mineral resource estimate. Refer below for
complete reference to the Technical Report.
Qualified Persons
Geoffrey Chinn P.Geo., Manager
Resource Geology of IAMGOLD and David
Beilhartz P.Geo, Vice-President Exploration of Trelawney,
both Qualified Persons as defined under National Instrument 43-101,
have reviewed and approved this disclosure having current knowledge
of the project.
Scientific and Technical Disclosure
For complete disclosure of the Trelawney mineral resource
estimate refer to the Technical Report on the Côté Lake Resource
Update, Chester Property, Ontario,
Canada reported in accordance with National Instrument
43-101 requirements, signed by W. Roscoe and B. Cook, Roscoe Postle
Associates Inc., effective February 24,
2012.
Mineral resource estimates are reported in accordance with the
CIM definitions.
Investors are cautioned that mineral resources are not mineral
reserves and do not have demonstrated economic viability.
Forward Looking Statement
This news release contains forward-looking statements. All
statements, other than of historical fact, that address activities,
events or developments that the Company or Trelawney believes,
expects or anticipates will or may occur in the future (including,
without limitation, statements regarding the expected benefits of
acquiring Trelawney, expected, estimated or planned gold and
niobium production, cash costs, margin expansion, capital
expenditures and exploration expenditures and statements regarding
the estimation of mineral resources, exploration results, potential
mineralization, potential mineral resources and mineral reserves)
are forward-looking statements. Forward-looking statements are
generally identifiable by use of the words "may", "will",
"should", "continue", "expect", "anticipate", "estimate",
"believe", "intend", "plan" or "project" or the negative of these
words or other variations on these words or comparable terminology.
Forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the Company's and
Trelawney's ability to control or predict, that may cause the
actual results of the Company or Trelawney to differ materially
from those discussed in the forward-looking statements. In
respect of the Company, factors that could cause actual results or
events to differ materially from current expectations include,
among other things, without limitation, failure to realize the
benefits of the acquisition of Trelawney, to meet expected,
estimated or planned gold and niobium production, cash costs,
margin expansion, capital expenditures and exploration expenditures
and failure to establish estimated mineral resources, the
possibility that future exploration results will not be consistent
with the Company's expectations, changes in world gold markets and
other risks disclosed in IAMGOLD's most recent Form 40-F/Annual
Information Form on file with the United States Securities and
Exchange Commission and Canadian provincial securities regulatory
authorities. In respect of Trelawney, factors that could cause
actual results or events to differ materially from current
expectations include, among other things, the timing and content of
upcoming work programs, geological interpretations, receipt of
property titles, potential mineral recovery processes and other
risks disclosed in Trelawney's filings with Canadian provincial
regulatory authorities. Any forward-looking statement speaks
only as of the date on which it is made and, except as may be
required by applicable securities laws, the Company and Trelawney
disclaim any intent or obligation to update any forward-looking
statement.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission limits
disclosure for U.S. reporting purposes to mineral deposits that a
company can economically and legally extract or produce.
IAMGOLD uses certain terms in this presentation, such as
"measured," "indicated," or "inferred," which may not be
consistent with the reserve definitions established by the
SEC. U.S. investors are urged to consider closely the
disclosure in the IAMGOLD Annual Reports on Forms 40-F. You
can review and obtain copies of these filings from the SEC's
website at http://www.sec.gov/edgar.shtml or by
contacting the Investor Relations department.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a leading mid-tier gold mining
company producing approximately one million ounces annually from
five gold mines (including current joint ventures) on three
continents. In the Canadian province of Québec, the Company also
operates Niobec Inc., which produces more than 4.5 million
kilograms of niobium annually, and is exploring for rare earth
elements close to its niobium mine. IAMGOLD is uniquely positioned
with a strong financial position and extensive management and
operational expertise. To grow from this strong base, IAMGOLD
has a pipeline of development and exploration projects and
continues to assess accretive acquisition opportunities.
IAMGOLD's growth plans are strategically focused in certain regions
in Canada, select countries in
South America and Africa.
About Trelawney
Trelawney is a Canadian junior mining and
exploration company with a growth-oriented strategy focused on
expanding its gold resources and developing its Canadian mineral
properties. The company's current focus is directed towards the
development and continued exploration of its Côté Lake Project,
located in Northern Ontario.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this news release.
Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through CNW Group's website at
www.newswire.ca. All material information on IAMGOLD can be found
at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué,
veuillez consulter le
http://www.iamgold.com/French/Home/default.aspx.
SOURCE IAMGOLD Corporation