Iamgold shares surge on stake sale in Suriname mine to China's Zijin Mining

Iamgold

18/10/2022 16:14

Oct 18 (Reuters) - Canadian gold miner Iamgold Corp
 IMG.TO   IAG.N  shares surged 16% on Tuesday after it decided
to sell 95% stake in Rosebel Gold Mines unit in northeastern
Suriname to China's Zijin Mining Group Co Ltd  601899.SS 
 2899.HK  for about $401 million.
    The Toronto-based company said the proceeds from the sale
will be used to construct its flagship Côté Gold project in
Canada so that it can stay on track to begin production in early
2024.
    The Rosebel Gold Mine N.V. unit holds a mine in Suriname of
the same name as well as a 70% interest in the Saramacca Mine,
Iamgold said, adding the country's government will continue to
hold the remaining 5% interest in the unit.
    The $401 million sale consists of $360 million in cash as
well as a release of Iamgold's equipment lease liabilities
amounting to about $41 million. The deal is expected to close
early in the first quarter of next year.
    The company's Toronto-listed shares were trading at C$1.70.
 (Reporting by Ruhi Soni in Bengaluru; Editing by Arun Koyyur)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))