Net proceeds of the offering will be used to repurchase the 9.7% interest in the Côté gold project near Gogama, Ontario, from Japan’s Sumitomo Metal Mining to return to a 70% interest in Côté, which poured its first gold this year.
The funds will be deposited in an interest-bearing account, or used to repay drawn amounts on its credit facility, until the completion of the repurchase, anticipated by the end of 2024.
Iamgold believes the ramp-up of Côté gold project, combined with the net proceeds of the offering, cash and cash equivalents, will be sufficient to repurchase the interest.
Iamgold and Sumitomo entered into a joint venture agreement in December 2022, which saw Iamgold retain a 60.3% ownership share in Côté and transfer an interest of 9.7% to Sumitomo.
The purchase price of the repurchase is equal to the C$341.7 million paid by Sumitomo for the transferred interest plus incremental contributions made, minus…
