TSX: IMG NYSE: IAG
All monetary amounts are expressed in U.S.
dollars, unless otherwise indicated.
TORONTO, Jan. 16, 2015 /CNW/ - IAMGOLD Corporation
("IAMGOLD" or "the Company") today announced that it has received
regulatory approvals to complete the sale of its Niobec mine to a
group of companies led by Magris Resources Inc. for cash proceeds
of $500 million after tax upon
closing. With these approvals in place, the sale of
Niobec is expected to close before the end of January,
2015.
The sale of Niobec, one of the world's three major niobium
producers, is located in Saint-Honoré-de-Chicoutimi in the Saguenay-Lac-Saint-Jean
region, Quebec, is to include the
adjacent rare earth element ("REE") deposit. The total
consideration of $530 million for the
transaction is comprised of a cash payment of $500 million payable on closing, as well as an
additional $30 million when the
adjacent REE deposit goes into commercial production. A 2%
gross proceeds royalty will be payable on any REE
production.
"We are taking the steps to change the game at IAMGOLD," said
IAMGOLD President and CEO, Steve
Letwin. "The Company's financial position is stronger
than many of its competitors as a result of this sale.
By unlocking the value of Niobec, we have significantly
strengthened the company's liquidity, which increases our capacity
to invest further in our existing business and consider
acquisitions."
"We will invest strategically, seeking out only opportunities
that improve our cost structure and that have near-term capability
to produce gold and generate positive cash flow," said Carol Banducci, IAMGOLD's Executive Vice
President and CFO.
The transaction proceeds on closing of $500 million, when added to current cash and cash
equivalents as well as the market value of the Company's gold
holdings, strengthen IAMGOLD's liquid assets to over $800 million. The Company also has
$500 million in unused credit
facilities.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
All information included in this news release, including any
information as to the Company's future financial or operating
performance, and other statements that express management's
expectations or estimates of future performance, other than
statements of historical fact, constitute forward looking
information or forward-looking statements and are based on
expectations, estimates and projections as of the date of this news
release. For example, forward-looking statements contained in this
news release are found under, but are not limited to: the
Company's guidance for production, total cash costs, all-in
sustaining costs, depreciation expense, effective tax rate, capital
expenditures, operations outlook, cost management initiatives,
development and expansion projects, exploration, the future price
of gold, the estimation of mineral reserves and mineral resources,
the realization of mineral reserve and mineral resource estimates,
the timing and amount of estimated future production, costs of
production, permitting timelines, currency fluctuations,
requirements for additional capital, government regulation of
mining operations, environmental risks, unanticipated reclamation
expenses, title disputes or claims and limitations on insurance
coverage. Forward-looking statements are provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Forward-looking
statements are generally identifiable by, but are not limited to
the, use of the words "may", "will", "should", "when". "continue",
"expect", "believe", "intend", "plan", "seek", "targets",
"strategy" or "project" or the negative of these words or other
variations on these words or comparable terminology.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
Company cautions the reader that reliance on such forward-looking
statements involve risks, uncertainties and other factors that may
cause the actual financial results, performance or achievements of
IAMGOLD to be materially different from the Company's estimated
future results, performance or achievements expressed or implied by
those forward-looking statements, and the forward-looking
statements are not guarantees of future performance. These risks,
uncertainties and other factors include, but are not limited to,
changes in the global prices for gold, copper, silver or certain
other commodities (such as diesel and electricity); changes in U.S.
dollar and other currency exchange rates, interest rates or gold
lease rates; risks arising from holding derivative instruments; the
level of liquidity and capital resources; access to capital
markets, and financing; mining tax regimes; ability to successfully
integrate acquired assets; legislative, political or economic
developments in the jurisdictions in which the Company carries on
business; operating or technical difficulties in connection with
mining or development activities; laws and regulations governing
the protection of the environment; employee relations; availability
and increasing costs associated with mining inputs and labour;
adverse changes in the Company's credit rating; contests over title
to properties; and the risks involved in the exploration,
development and mining business. Risks and unknowns inherent in all
projects include the inaccuracy of estimated reserves and
resources, metallurgical recoveries, capital and operating costs of
such projects, and the future prices for the relevant minerals. The
capital expenditures and time required to develop new mines or
other projects are considerable, and changes in costs or
construction schedules can affect project economics. Actual costs
and economic returns may differ materially from IAMGOLD's estimates
or IAMGOLD could fail to obtain the governmental approvals
necessary for the operation of a project; in either case, the
project may not proceed, either on its original timing or at
all.
For a more comprehensive discussion of the risks faced by the
Company, and which may cause the actual financial results,
performance or achievements of IAMGOLD to be materially different
from the company's estimated future results, performance or
achievements expressed or implied by forward-looking information or
forward-looking statements, please refer to the Company's latest
Annual Information Form, filed with Canadian securities regulatory
authorities at www.sedar.com, and filed under Form 40-F with the
United States Securities Exchange Commission at
www.sec.gov/edgar.html. The risks described in the Annual
Information Form (filed and viewable on www.sedar.com and
www.sec.gov/edgar.html, and available upon request from the
Company) are hereby incorporated by reference into this news
release.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise except as required by
applicable law.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier
mining company with four operating gold mines (including current
joint ventures) on three continents. A solid base of strategic
assets in Canada, South America and Africa is complemented by development and
exploration projects and continued assessment of accretive
acquisition opportunities. IAMGOLD is in a strong financial
position with extensive management and operational
expertise.
Please note:
This 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