HomeEast AfricaIAMGOLD opts out of Nyakafuru project in Tanzania

IAMGOLD opts out of Nyakafuru project in Tanzania

The open pit at
Resolute’s Golden Pride
mine in Tanzania
Toronto, Canada — MININGREVIEW.COM — 29 February, 2008 – Continuing the rationalisation of its exploration portfolio, IAMGOLD Corporation – a top Canadian mid-tier gold producer, with annual production of close to 1 million ounces from eight operations in Africa, North America, and South America – has opted out of the Nyakafuru gold project in Tanzania.

In a press release issued here last night, the company announced the sale of its 34% interest in the Nyakafuru project in Tanzania to Resolute Mining Limited. The project is located approximately 120 km from Resolute’s Golden Pride mine in Tanzania.

The statement reveals that the transaction is valued at US$6.0 million (R45 million), to be paid to IAMGOLD in cash or Resolute shares, at Resolute’s option. “In addition, Resolute Mining shall pay a royalty of US$10 (R75) an ounce for each additional resource ounce of gold, attributable to the former IAMGOLD interest that is discovered on the project, up to a total cap of US$3.75 million (R28 million),” it adds.

“We are pleased to have completed this transaction with Resolute as part of the rationalisation of our non-core exploration assets,” said IAMGOLD president and CEO Joseph Conway, “while retaining the opportunity to benefit from additional discovery on the property.”

Since the beginning of 2007, the company’s ongoing divestiture of non-core assets has been valued at close to US$65 million (close to R490 million).

The Nyakafuru project is located approximately 120 km from the Golden Pride gold mine in Tanzania, and at 30 June 2007 had indicated resources of 545 000 oz and inferred resources of 527 000 oz.

“Apart from being a very cost-effective acquisition of ounces,” said Resolute Mining CEO Peter Sullivan, “the deal gives us full control of this advanced project in Tanzania.”