IAMGOLD completes sale of interest in Sadiola Gold Mine
Published by Jessica Casey,
Global Mining Review,
IAMGOLD Corp. has announced that the company, together with joint venture partner, AngloGold Ashanti Ltd (AGA), has completed the previously announced sale of its collective interests in Société d'Exploitation des Mines d'Or de Sadiola S.A. (SEMOS) to Allied Gold Corp. (the transaction). SEMOS' principal asset is the Sadiola Gold Mine, located in the Kayes region of Western Mali.
Prior to the completion of the transaction (completion), IAMGOLD and AGA each held a 41% interest in SEMOS with the remaining 18% interest held by the Republic of Mali. Pursuant to the transaction and immediately prior to completion, the Republic of Mali acquired a further 2% interest in SEMOS (1% each from IAMGOLD and AGA) (the republic transaction). Consequently, upon completion, IAMGOLD and AGA each sold a 40% interest in SEMOS to Allied Gold.
Immediately prior to the republic transaction, a dividend of US$20 million was declared and paid by SEMOS pro-rata to its shareholders. IAMGOLD and AGA each received a cash dividend of US$8.2 million and the Republic of Mali received a cash dividend of US$3.6 million.
Upon completion, IAMGOLD and AGA received US$50 million (US$25 million each) from Allied Gold and the Republic of Mali. In addition, within three business days of completion, IAMGOLD and AGA will receive agreed additional consideration of approximately US$3.6 million (approximately $1.8 million each) based upon the amount by which the cash balance of SEMOS at 30 April 2020 was greater than the amount agreed pursuant to the transaction agreement entered into by IAMGOLD and AGA with Allied Gold in December 2019.
Following completion, IAMGOLD and AGA remain entitled to the following deferred consideration:
- US$25 million (US$12.5 million each to IAMGOLD and AGA) upon the production of the first 250 000 oz from the Sadiola Sulphides Project (SSP).
- US$25 million (US$12.5 million each to IAMGOLD and AGA) upon the production of a further 250 000 oz from the SSP.
- US$2.5 million (US$1.25 million each to IAMGOLD and AGA) in the event a favourable settlement is achieved by SEMOS in ongoing litigation pending before the Malian courts.
Gordon Stothart, President and CEO of IAMGOLD, commented: "We are pleased to complete this transaction, which underpins our commitment and focus on a prudent capital allocation strategy as we embark on a transformational path with the execution on our growth pipeline. The Sadiola mine was the founding cornerstone asset and building block of our company, and we would like to recognise the Sadiola team, surrounding communities and all stakeholders for their valued support over more than 20 years."
Read the article online at: https://www.globalminingreview.com/finance-business/06012021/iamgold-completes-sale-of-interest-in-sadiola-gold-mine/
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