China Gold sees Canada's Iamgold as good fit -executive (updated)

China Gold International Resources

18/09/2019 20:40

(Adds details, more executive comments)
    By Jeff Lewis
    DENVER, Sept 18 (Reuters) - Canadian miner Iamgold Corp
 IMG.TO  would fit well with China Gold International Resource
Corp Ltd's  CGG.TO  acquisition strategy as the Chinese
state-run company seeks to buy producing gold mines, an
executive with the overseas arm of China National Gold Group
said on Wednesday.
    China Gold is aggressively looking to add to its project
pipeline, and Iamgold would be a good fit, Jerry Xie, executive
vice president, told Reuters on the sidelines of the Denver Gold
Forum.
    "You can take that as an example. We feel comfortable for
that size, as a corporate acquisition," he said.
    "That one is really good to fit our strategy,” he added.
    He declined comment on whether the company has held specific
talks with Iamgold, whose flagship project is the Rosebel mine
in Suriname.
    China Gold is eyeing deals in Canada, Latin America and
Africa in the $1 billion to $2 billion range but would also
consider partnering on projects and smaller deals around $500
million, Jerry said. 
    Iamgold Chief Executive Officer Stephen Letwin told Reuters
on Tuesday he would not comment on specific deals but said the
company was open to partnering on its projects with strategic
investors.
    Iamgold was not available for immediate comment on
Wednesday.
    Rising gold prices  XAU=  have spurred expectations of
deal-making in the sector as miners look to boost shrinking gold
reserves and vocal investors demand companies lower costs.
 urn:newsml:reuters.com:*:nL1N22D0OM
    Iamgold shares were trading down 0.1% C$4.50, giving it
market value of about C$2.2 billion ($1.7 billion)
    ($1 = 1.3291 Canadian dollars)

 (Reporting by Jeff Lewis
Editing by Denny Thomas, Rosalba O'Brien and Cynthia Osterman)
 ((Jeff.Lewis@thomsonreuters.com;))