(Kitco News) - On Tuesday, IAMGOLD (TSX: IMG) (NYSE: IAG) announced that it has entered into a definitive agreement with Zijin Mining Group to sell its 95% interest in Rosebel Gold Mines N.V. for cash consideration of $360 million and release of IAMGOLD's equipment lease liabilities amounting to approximately $41 million.
The company said that Rosebel Gold Mines N.V. holds a 100% interest in the Rosebel gold mine and a 70% participating interest in the Saramacca mine, located in Suriname, adding that the remaining 5% interest in Rosebel Gold Mines N.V. will continue to be held by the Government of Suriname.
The Rosebel gold mine is located in the mineral rich Brokopondo district in north eastern Suriname. The Rosebel gold mine began commercial production in 2004. The company's attributable gold production at Rosebel in 2022 is expected to be in the range of 155,000 to 180,000 ounces.
Maryse Bélanger, Chair of the Board and Interim President and CEO, commented, "This transaction represents a significant step forward in pursuing IAMGOLD's strategy of disciplined portfolio management as we look to create value for shareholders through a focus on core assets.
"The proceeds of the sale will be invested in the ongoing construction of our flagship Côté Gold project - a strong positive step towards addressing our funding commitments to deliver the Côté Gold project on the updated schedule for production in early 2024."
The company said that the transaction is subject to certain regulatory approvals including the receipt of approvals from the relevant authorities in the People's Republic of China, approval for transfer of licenses from the Government of Suriname, as well as other customary closing conditions.
The transaction is expected to close early in the first quarter of 2023 or earlier, subject to closing conditions being met.
IAMGOLD is a mid-tier gold mining company operating in North America, South America and West Africa. The company has three operating mines: Essakane (Burkina Faso), Rosebel (Suriname) and Westwood (Canada), and is building the large-scale, long life Côté Gold project (Canada) which is expected to commence production in early 2024.
Zijin Mining is a multinational mining group focused on exploration and development of gold, copper and other mineral resources globally. The company owns significant mining investment projects in 12 overseas countries and 14 provinces (regions) in China.
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