Iamgold (NYSE: IAG) (TSX: IMG) announced on Monday that it had exercised its right to repurchase a 9.7% interest in the Côté gold mine in Ontario from Sumitomo Metal Mining.
With the move, the miner returned to its 70% stake in the project in Ontario. The transaction was finalized on November 30.
In December 2022, Iamgold and Sumitomo amended their Côté Gold joint venture agreement, which resulted in Sumitomo acquiring a 9.7% interest in the project.
As part of this agreement, Iamgold retained a right of repurchase, which it has now exercised, completing the repurchase of Sumitomo’s shares for $377 million. This amount includes a $23.7 million fee for the repurchase option, which had accrued during 2023.
Côté 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 doré bar in April, achieving commercial production in August.
Total gold production from Côté Gold this year is expected to be 220,000-290,000 ounces.
“In the near term, Côté remains on track for exiting this year at 90% of nameplate throughput, positioning the project well to achieve full run rate next year,” said Iamgold president and CEO Renaud Adams.
In addition to Côté, Iamgold operates two other mines — Essakane in Burkina Faso and Westwood in Quebec, Canada.
Shares of Iamgold fell 1.3% by 10:20 a.m. EDT. The miner has a market capitalization of C$4.35 million ($3.09 billion).
Source: MINING.COM – Read More
