TSX-listed IAMGOLD Corporation and its joint venture partner, AngloGold Ashanti, has entered an agreement to sell its collective interests in Société d'Exploitation des Mines d'Or de Sadiola S.A. to Allied Gold Corp.
AngloGold Ashanti (AGA) and IAMGOLD each hold a 41% interest in SEMOS with the remaining 18% interest held by the Government of Mali.
Under the terms of the Agreement, IAMGOLD and AGA will sell their collective interests in SEMOS to Allied Gold for a cash consideration of US$105 million, payable as follows:
- $50 million ($25 million each to IAMGOLD and AGA) upon the fulfillment or waiver of all conditions precedent and closing of the transaction;
- Up to a further $5 million ($2.5 million each to IAMGOLD and AGA), payable eight days after closing, to the extent that the cash balance of SEMOS at closing is greater than an agreed amount;
- $25 million ($12.5 million each to IAMGOLD and AGA) upon the production of the first 250,000 oz from the Sadiola Sulphides Project (SSP); and $25 million ($12.5 million each to IAMGOLD and AGA) upon the production of a further 250,000 oz from the SSP
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Gord Stothart, President and COO of IAMGOLD, comments:
"This transaction reflects our continuing efforts toward self-funding and focussed capital allocation.
"The Sadiola mine was the founding asset of IAMGOLD, and we are pleased to have reached this agreement with Allied Gold to secure its long-term future."
The transaction is subject to the fulfillment, or waiver, of a number of conditions precedent, including the receipt of certain approvals and releases from the Government of Mali, as well as, in the case of AGA, the approval of the South African Reserve Bank.
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It is anticipated that all conditions precedent will be fulfilled or waived by the end of April 2020.
In addition, upon the fulfillment or waiver of all conditions precedent to the Transaction but immediately prior to closing, SEMOS will pay a dividend of $15 million pro rata to its shareholders.
IAMGOLD and AGA will each receive a cash dividend of $6.15 million and the Government of Mali will receive a cash dividend of $2.7 million.