All amounts are expressed in Canadian dollars, unless otherwise
indicated
IAMGOLD Corporation (TSX:IMG)(NYSE:IAG) ("IAMGOLD" or "the
Company") and Trelawney Mining and Exploration Inc. (TSX
VENTURE:TRR)(FRANKFURT:RTW) ("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 Cote 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 Cote 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. Cote
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 Cote 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 Cote
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 Cote 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 Cote 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
metres(1).
"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 Cote 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 Quebec, 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 Cote Lake Project, located in Northern
Ontario.
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 desirez obtenir la version francaise de ce communique,
veuillez consulter le
http://www.iamgold.com/French/Home/default.aspx.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this news release.
Contacts: IAMGOLD Corporation Bob Tait, VP Investor Relations
(416) 360-4743 or Mobile: (647) 403-5520 Toll-free: 1-888-464-9999
IAMGOLD Corporation Laura Young, Director, Investor Relations (416)
933-4952 or Mobile: (416) 670-3815 Toll-free:
1-888-464-9999info@iamgold.com www.iamgold.com Contacts: Trelawney
Mining and Exploration Inc. Dave Reid, VP Investor Relations (416)
363-8567 ext. 104 or Mobile: (705)
254-8303info@trelawneymining.com
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