IAMGOLD secures funding from Sumitomo for Canadian gold project

Under the agreement, commencing in January 2023, Sumitomo will contribute certain of IAMGOLD's funding amounts to the Côté Gold project that in aggregate are expected to total approximately US$340 million over the course of 2023. As a result of Sumitomo funding such amounts, IAMGOLD will transfer, in aggregate, an approximate 10% interest in Côté to SMM as funding is made by SMM, subject to the right for IAMGOLD to repurchase the transferred interests pursuant to the terms of the agreement. IAMGOLD will pay a repurchase option fee to SMM on the terms set forth in the agreement, and IAMGOLD shall have the right to exercise the repurchase option on seven dates between 30 November 2023 and 30 November 2026, to return to its full 70% interest in the Côté Gold project. IAMGOLD may exercise its option through the payment of the aggregate amounts advanced by Sumitomo in respect of the transferred interests, subject to certain adjustments as set out in the agreement relating to the period between initial gold production and commercial production. Such terms are discussed further below and set out in detail in the agreement. IAMGOLD will remain the operator of the Côté Gold project.

Maryse Bélanger, Chair and interim President and CEO of IAMGOLD, said:

"The financial support of Sumitomo demonstrates to all of our stakeholders the strong validation of the Côté Gold project from our partner and our alignment to complete construction and commence production. On behalf of the Board and IAMGOLD, I want to thank Sumitomo for their continued support and dedication as together we continue to build what will be Canada's third largest gold mine by production."

"The Côté Gold project remains on track for gold production in early 2024, in line with the updated schedule and cost to complete as outlined on our most recent project update at the end of last quarter. The successful construction and commissioning of the Côté Gold project, together with our commitment to mine safely across all of our operations, is the most important strategic priority of IAMGOLD," continued Ms. Bélanger.

"It is Sumitomo's and IAMGOLD's intent for IAMGOLD to return to a 70% interest in the project, and the flexibility of the terms of the agreement reflects that alignment. Notwithstanding the financing initiatives we have announced to date, we continue to advance further financing alternatives available to the company to strengthen its business, improve its liquidity and reduce amounts drawn under its credit facility, and in order to place the company in a strong position to return to a 70% interest in the Côté Gold project at the appropriate time," concluded Ms. Bélanger.

Mr. Akira Nozaki, President and Representative Director of Sumitomo Metal Mining, added:

"The Côté Gold project has the potential to become a world-class, low-cost, long-life gold mine, and is one of the major pillars of Sumitomo Metal Mining's growth strategy outlined in our "2021 3-year business plan. We believe that this transaction will further strengthen the friendly relationship between IAMGOLD and Sumitomo Metal Mining, while ensuring that the construction of this project will proceed without delay and secure the early start-up of operations."

Read the article online at: https://www.globalminingreview.com/mining/02012023/iamgold-secures-funding-from-sumitomo-for-canadian-gold-project/