Canada’s Iamgold (NYSE: IAG) (TSX: IMG) is a step closer to buying back the 9.7% interest in its Côté Gold mine in Ontario from Sumitomo Metal Mining, having issued a 60-day formal notice to exercise its right to repurchase it.

The move will increase Iamgold’s stake to 70% in the mine, which will be Canada’s third-largest gold operation once at full tilt. In the first six years of production, Côté Gold’s expected annual gold output is set at 495,000 ounces. Over the life of the mine, it will average 365,000 ounces per year.

Located 125 km southwest of Timmins, Ontario, Côté produced its first first doré bar in April, achieving commercial production in August this year.

Côté, located 125 km southwest of Timmins, Ontario, is Canada’s third-largest gold mine in terms of production.

The asset is currently owned as a joint venture set in December 2022 between the Toronto-based miner and Sumitomo. At the time, the company faced financial hurdles, so it sought a loan from the Japanese miner to complete the Côté project. As a result, Sumitomo’s stake in Côté increased from 30% to 40%. The loan agreement allowed Iamgold to buy back its 70% interest within a specified period.

In May 2024, Iamgold announced it had secured $300 million in funding that would be used to repurchase the 9.7% interest from its partner.

Total gold production from Côté Gold this year is expected to be in the range of 220,000-290,000 ounces as improvements to mill availability are made during the ramp-up of operations. Iamgold’s share in the mine is anticipated to be on the lower end of 130,000-175,000 ounces. 

The company reiterated the mine was on track to reach 90% throughput by the end of the year. 

In addition to Côté, Iamgold operates two other mines — Essakane in Burkina Faso and Westwood in Quebec, Canada.

Source: MINING.COM – Read More