IAMGOLD Corp. (IAG, IMG.TO) announced the Societe D'Exploitation Des Mines D'Or De Sadiola or "SEMOS", owner of the Sadiola Gold Mine in Mali, West Africa, board approval to proceed with the US$9 million Sadiola Deep Sulphide Feasibility Study.
In addition, IAMGOLD announced they have reached a tentative agreement with the International Finance Corporation or "IFC" for the purchase of the IFC 6% interest in SEMOS. As per the terms of transaction. US$12 million, payable on the transfer of the IFC's full interest in SEMOS to IAMGOLD; an additional US$500,000, payable for each of 2010, 2011 and 2012, provided the average gold price in the year is US$900 (or more) an ounce OR an additional US$1 million payable for each of 2010, 2011 and 2012, if the average gold price in the year is US$1,000 (or more) an ounce; and an additional US$1 million, payable on approval by SEMOS and the Malian government to proceed with mining the Sadiola deep sulphide deposit that has currently been identified.
Under the terms of the existing SEMOS shareholders agreement, the remaining partners, AngloGold Ashanti Limited or "AGA" and the Republic of Mali have the opportunity to elect whether they will take up their proportionate share of the IFC interest on the agreed terms and conditions. IAMGOLD anticipates that the transaction will be completed before the end of the year.
The IFC has accepted the following terms offered by IAMGOLD for the sale of their 6% share in SEMOS. The IFC's 6% share of production represents approximately 21,000 ounces of gold in 2009. As per the SEMOS shareholders agreement, the remaining partners, AGA and the Republic of Mali have 45 days to elect whether they will participate in the purchase on a pro rata basis.
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