All amounts are expressed in Canadian dollars.
TSX: IMG NYSE: IAG
TORONTO, Nov. 14, 2012 /PRNewswire/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") today announced that
it has completed a transaction with INV Metals Inc. ("INV Metals")
to sell IAMGOLD Ecuador S.A., which includes the Quimsacocha
project in Ecuador (the
"Transaction").
IAMGOLD indirectly received an aggregate of 221,280,903 INV
Metals' common shares ("INV Shares") as consideration for the sale.
In addition, as part of INV Metals' private placement that was
required as part of the Transaction, IAMGOLD acquired an additional
10 million INV Shares for $0.10 per
INV Share. The total number of INV Shares received by IAMGOLD or
its affiliates pursuant to the Transaction combined with the INV
Shares IAMGOLD acquired in the related private placement is
231,280,903 INV Shares, which represents approximately 47% of all
INV Shares issued and outstanding. Based on the closing price of
the INV Shares on the Toronto Stock Exchange on November 6, 2012, the INV Shares acquired by
IAMGOLD or its affiliates pursuant to the Transaction have a deemed
value of $0.13 per INV Share, giving
the Transaction a total value of approximately $30 million.
Pursuant to the Transaction, IAMGOLD will also be entitled to
receive two milestone payments. The first milestone payment of 50
million INV Shares will be paid when INV Metals signs an
exploitation contract with the government of Ecuador. The second milestone payment of 25
million INV Shares will be paid upon achieving commercial
production. In the event the share issuance under a milestone
payment would result in IAMGOLD holding more than 49.9% of the
issued and outstanding INV Shares, the number of INV Shares issued
in connection with such milestone payment will equal an amount that
caps IAMGOLD's resulting ownership of INV Shares at 49.9% of the
issued and outstanding INV Shares, and the difference between the
number of INV Shares actually issued and those that were required
to be issued but for the 49.9% limit (the "Excess INV Shares") will
be (i) represented by an excess rights certificate which will
entitle the holder to acquire, for a period of ten years from the
date of issuance, that number of INV Shares that is equal to the
Excess INV Shares, subject to standard adjustments, for no
consideration at any time and from time to time upon exercise, or
(ii) at the option of INV Metals, be paid in cash, with the amount
determined by multiplying the number of Excess INV Shares by the
market price of the Excess INV Shares.
Commenting on the sale, President and CEO Steve Letwin said, "Our strategy has been to
focus on expanding our core long-life assets that can provide the
greatest rate of return for IAMGOLD. Structuring the sale of
Quimsacocha in this way allows IAMGOLD to participate in the future
success of this project. We are pleased that INV Metals will
reinitiate exploration at Quimsacocha and move the project forward
to maximize its value for all shareholders."
IAMGOLD directly and indirectly acquired the INV Shares pursuant
to the terms of a share purchase agreement and a private placement
subscription and holds the securities for investment
purposes. IAMGOLD currently has no intention of acquiring
ownership of, or control over, additional securities of INV Metals
other than additional INV Shares that may be issued to IAMGOLD
through the milestone payments.
In addition to the share purchase agreement, IAMGOLD entered
into: (i) a registration rights agreement with INV Metals, (ii) an
equity rights agreement, and (iii) a nomination agreement.
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
believes, expects or anticipates will or may occur in the future
(including, without limitation, 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 ability to
control or predict, that may cause the actual results of the
Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual
results or events to differ materially from current expectations
include, among other things, without limitation, 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. 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 disclaims any intent or obligation to update any
forward-looking statement.
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 owns a rare earth element
resource 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.
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