IAMGOLD now has funding in place to complete Côté Gold project
IAMGOLD announced this week it now has the funding in place to complete its Côté Gold project, located about an hour south of Timmins.
The company said it has completed the sale of its 95 per cent interest in Rosebel Gold Mines N.V. in Suriname to Zijin Mining Group Co. Ltd. for US$360 million (about $480 million Canadian), as well as the release of IAMGOLD's equipment lease liabilities amounting to approximately $41 million.
The remaining five per cent interest in Rosebel will continue to be held by the Government of Suriname.
"On behalf of the company, we would like to thank the Rosebel team for their hard work and commitment," said Maryse Bélanger, IAMGOLD’s interim president and CEO, in a statement.
"With the completion of the sale of Rosebel, IAMGOLD has achieved an important milestone in the company's strategy to create value for our stakeholders through disciplined portfolio management to fund the Côté Gold Project.”
“This transaction, in addition to the previously announced sale of IAMGOLD's West African gold assets and the financing agreement with Sumitomo, ensures the current remaining funding requirements for completion of construction at Côté have been met," Bélanger added.
Construction of Côté Gold began in 2020 and was expected to take three years and cost the company around $900 million. The lifespan of the mine is expected to be 16-18 years and produce 495,000 ounces of gold a year in its first six years.
Average production over the full 18 years is estimated at 365,000 ounces a year, starting in the fourth quarter of 2023.
However, rising costs and other challenges recently pushed back the opening to early 2024. IAMGOLD's share of the remaining costs to complete the project soared from $750 million to an estimated $1.3 billion.
That meant the company needed to raise about $1.1 billion to complete the work.
In December, IAMGOLD announced an agreement with Sumitomo Metal Mining worth $340 million, giving the Japanese company a 10 per cent stake in Côté.
Also in December, IAMGOLD announced it was selling its Boto Gold project, located in western Africa, for $282 million.
Côté Gold is now more 70 per cent complete and is scheduled to come into production in early 2024.
CTVNews.ca Top Stories
B.C. tenants evicted for landlord's use after refusing large rent increase to take over neighbouring suite
Ashley Dickey and her mother rented part of the same Coquitlam duplex in three different decades under three different landlords.
Mountain guide dies after falling into a crevasse in Banff National Park
A man who fell into a crevasse while leading a backcountry ski group deep in the Canadian Rockies has died.
Expert warns of food consumption habits amid rising prices
A new survey by Dalhousie University's Agri-Food Analytics Lab asked Canadians about their food consumption habits amid rising prices.
MPP Sarah Jama asked to leave Ontario legislature for wearing keffiyeh
MPP Sarah Jama was asked to leave the Legislative Assembly of Ontario by House Speaker Ted Arnott on Thursday for wearing a keffiyeh, a garment which has been banned at Queen’s Park.
Charlie Woods, son of Tiger, shoots 81 in U.S. Open qualifier
Charlie Woods failed to advance in a U.S. Open local qualifying event Thursday, shooting a 9-over 81 at Legacy Golf & Tennis Club.
Ex-tabloid publisher testifies he scooped up possibly damaging tales to shield his old friend Trump
As Donald Trump was running for president in 2016, his old friend at the National Enquirer was scooping up potentially damaging stories about the candidate and paying out tens of thousands of dollars to keep them from the public eye.
Here's why provinces aren't following Saskatchewan's lead on the carbon tax home heating fight
After Prime Minister Justin Trudeau said the federal government would still send Canada Carbon Rebate cheques to Saskatchewan residents, despite Saskatchewan Premier Scott Moe's decision to stop collecting the carbon tax on natural gas or home heating, questions were raised about whether other provinces would follow suit. CTV News reached out across the country and here's what we found out.
Montreal actress calls Weinstein ruling 'discouraging' but not surprising
A Montreal actress, who has previously detailed incidents she had with disgraced Hollywood producer Harvey Weinstein, says a New York Court of Appeals decision overturning his 2020 rape conviction is 'discouraging' but not surprising.
Caleb Williams, Jayden Daniels and Drake Maye make it four NFL drafts with quarterbacks going 1-3
Caleb Williams is heading to the Windy City, aiming to become the franchise quarterback Chicago has sought for decades.