All monetary amounts are expressed in U.S.
dollars, unless otherwise indicated.
TORONTO, June 5, 2017 /PRNewswire/ - IAMGOLD
Corporation ("IAMGOLD" or the "Company") today announced that
it has entered into an Investment Agreement with Sumitomo Metal
Mining Co., Ltd., a Tokyo,
Japan-based mining company and a global leader in the
development and mining of non-ferrous metals, and a wholly-owned
subsidiary of Sumitomo (collectively "Sumitomo") whereby IAMGOLD
will form a joint venture with Sumitomo. Sumitomo will pay an
aggregate $195 million to IAMGOLD for
a 30% undivided participating interest in IAMGOLD's ownership
interest in the Côté Gold Project in Ontario.
Under the terms of the Investment Agreement, on closing,
Sumitomo will acquire a 30% undivided participating joint venture
interest in IAMGOLD's ownership interest in the Côté Gold Project
for an aggregate $195 million, of
which $100 million is payable upon
closing. The remaining $95 million is
payable on the earlier of: (i)18 months following closing, or (ii)
the date of public filing of a feasibility study with respect to
the Côté Gold Project. Closing of the transaction is expected to
occur before the end of the month.
IAMGOLD will be the operator of the Côté Gold Project during
development and once in operation. Each party will be
responsible for funding its proportionate share of expenditures,
including initial and sustaining capital expenditures for the Côté
Gold Project.
"This transaction is significant for IAMGOLD as it validates the
intrinsic value of the Côté Gold Project. It will enable us
to move the Project into development and to significantly diversify
our production profile as a result of future production from our
Canadian operations," said IAMGOLD's President and CEO Steve Letwin. "After extensive due diligence by
both parties, what solidified the relationship was the mutual trust
and respect and the alignment around strategic priorities. In
addition to providing us with the financial capacity to develop the
Côté Gold Project, we are gaining a partner with business
development and technical expertise who we can work with in the
future to explore new possibilities."
IAMGOLD began discussions concerning a potential strategic
partnership with Sumitomo in August
2016. Since then, there has been extensive interaction
between the two companies, with multiple site visits to Côté Gold
involving Sumitomo's senior management and technical teams. During
the due diligence period, IAMGOLD visited the Hishikari Gold Mine
in Isa, Kagoshima, and
Steve Letwin and Don Charter, Chairman of IAMGOLD, spent time
with Sumitomo's President, Yoshiaki
Nakazato, in Tokyo.
Sumitomo's in-depth expertise in building and operating mines
will complement IAMGOLD's proven track record as a successful mine
builder and operator. Additionally, IAMGOLD will benefit from
Sumitomo's access to Japanese suppliers to the mining industry,
which will complement, where needed, existing supplier networks
within Ontario. Both companies
have strong business development capabilities and reach and a
common interest in seeking opportunities beyond Côté Gold, which
will support IAMGOLD's objective to grow its production
pipeline.
On Closing of the transaction, IAMGOLD and Sumitomo will form an
unincorporated joint venture with respect to the Côté Gold Project,
and will enter into a definitive joint venture agreement.
Immediately following Closing, IAMGOLD will own 70% and Sumitomo
30% of the total outstanding participating interests under the
joint venture agreement.
IAMGOLD and Sumitomo will have oversight of Côté Gold Project
activities through an Oversight Committee, which will comprise six
representatives consisting of four from IAMGOLD and two from
Sumitomo, with decision making based on the proportionate
participating interest. We remain committed to advancing Côté in
coordination with the federal and provincial government, northern
municipalities and local communities, and in particular with our
indigenous community partners on whose traditional territory the
project will be built and operated.
The Investment Agreement pursuant to which Sumitomo will make
the initial investment contains terms, conditions, representations,
warranties, and indemnities customary for transactions of this
nature. Closing of the transaction is subject to customary
closing conditions, but is not subject to any financing condition
or regulatory approvals.
In connection with this transaction, RCI Capital Group acted as
financial advisor and originator of the buy side on behalf of
IAMGOLD, and Fasken Martineau acted as legal counsel to IAMGOLD,
and DLA Piper (Canada) acted as
legal counsel to Sumitomo.
About Sumitomo Metal Mining Co., Ltd.
Sumitomo Metal Mining Co., Ltd. is a Japan based company with approximately
$7.3 billion in revenue in fiscal
year ending March 31, 2017. The
Company is primarily focused on the development and mining of
non-ferrous metals, and produces and markets copper, gold, nickel,
and other precious metals. Sumitomo Metal Mining is listed on the
Tokyo Stock Exchange (5713).
About IAMGOLD
IAMGOLD (www.iamgold.com) is a mid-tier mining company with four
operating gold mines on three continents. A solid base of strategic
assets in North and South America
and West 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.
CONFERENCE CALL
A conference call will be held on Tuesday, June 6, 2017 at 8:30 a.m. (Eastern Daylight Time) for a
discussion with management regarding the IAMGOLD-Sumitomo
transaction and highlights from the Côté Gold prefeasibility study.
A webcast of the conference call will also be available through
IAMGOLD`s website - www.iamgold.com.
Conference Call Information: North America Toll-Free:
1-800-319-4610 or 1-604-638-5340.
A replay of this conference call will be accessible for one
month following the call by dialing: North America toll-free: 1-800-319-6413 or
1-604-638-9010, passcode: 1490#.
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 expected, estimated or planned
gold 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 "will", "should",
"continue", "expect", "estimate", "believe", "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 satisfy all closing conditions to closing, failure to
meet expected, estimated or planned gold 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. 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.
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/accueil/default.aspx.
SOURCE IAMGOLD Corporation