- IAMGOLD (IMG) has reached an agreement to amend the Côté Gold Joint Venture Agreement (JVA)
- Under the agreement, Sumitomo will contribute approximately $340 million to the Côté Gold Project over the course of 2023 for a 10 per cent interest in the project
- IAMGOLD will retain the right to repurchase the transferred interest under the terms of the agreement
- The project, located in northeastern Ontario, is expected to commence production in early 2024
- IAMGOLD is a mid-tier gold mining company operating in North America, South America and West Africa
- IAMGOLD Corporation (IMG) opened trading at C$2.50
IAMGOLD (IMG) has reached an agreement to amend the Côté Gold Joint Venture Agreement (JVA).
Under the agreement with Sumitomo Metal Mining Co., Ltd. and SMM Gold Cote Inc., commencing in January 2023, Sumitomo will contribute approximately $340 million to the Côté Gold Project in northeastern Ontario over the course of 2023. IAMGOLD will transfer approximately 10 per cent interest in Côté to SMM, subject to the right for IAMGOLD to repurchase the transferred interest under the terms of the agreement. IAMGOLD will pay a repurchase option fee to SMM, and IAMGOLD shall have the right to exercise the repurchase option on seven dates between November 30, 2023, and November 30, 2026, to return to its full 70 per cent interest in the Côté Gold Project.
IAMGOLD will remain the operator of the Côté Gold Project.
Maryse Bélanger, Chair and interim President and CEO of IAMGOLD, commented on the news.
“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.”
Ms. Bélanger added,
“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.”
“It is Sumitomo’s and IAMGOLD’s intent for IAMGOLD to return to a 70 per cent 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 in order to place the company in a strong position to return to a 70 per cent interest in the Côté Gold Project at the appropriate time,” concluded Ms. Bélanger.
IAMGOLD is a mid-tier gold mining company operating in North America, South America and West Africa. The company has three operating mines: Essakane (Burkina Faso), Rosebel (Suriname) and Westwood (Canada), and is building the large-scale, long life Côté Gold project in partnership with Sumitomo Metals & Mining of Japan, which is expected to commence production in early 2024.
IAMGOLD Corporation (IMG) opened trading at C$2.50.