IAMGOLD Corporation (NYSE: IAG) is engaged as a mid-tier gold mining company, which maintains operations across North America, South America and West Africa. The company has two operating mines: Essakane (Burkina Faso) and Westwood (Canada). The company is also working on building a large-scale gold project in Canada in a partnership with Sumitomo Metals & Mining of Japan. Shares of the gold mining company are rallying 27% through early trading on Tuesday, December 20, 2022. Over the past three months, IAMGOLD has seen average daily volume of 5.73 million shares. However, volume of 12.25 million shares or dollar volume of around $28.3 million, has already exchanged hands through early trading.

Shares of IAMGOLD are gaining after the company announced it has entered into a definitive agreement to sell its 90% interest in the Boto Gold Project in Senegal and 100% in both its Diakha-Siribaya Gold Project in Mali, the Karita Gold Project & associated properties in Guinea and an early-stage exploration properties in Boto West, and the vested interest in the Senala Option Earn-in Joint Venture in Senegal. The company is collectively selling its Senegal, Mali and Guinea projects for a total consideration of $282 million.

The total amount of $282 million is subject to change in intercompany loans associated with the continued growth and operation of projects between definitive announcement agreement and the closing of the sale. Included in the total consideration is a $30 million deferred payment, which will be available to be paid out either six months after the closing of the Boto Gold Project and associated properties or at a time mutually-agreeable by both parties.

The asset sale is subject to certain regulatory approvals, including the transfer of permits and licenses from the governments of Senegal, Mali and Guinea. In addition, IAMGOLD’s creditors must sign off on the deal as well. Overall, the transaction is estimated to close sometime during the second or third quarter of 2023.

Maryse Bélanger, Chair of the Board of IAMGOLD and Interim President and CEO, commented: “The sale of our Bambouk assets to Managem is the culmination of a comprehensive strategic review and sale process. We are pleased that ownership of the Bambouk assets will be assumed by Managem, which has decades of mining development and operating experience in Africa and intends to advance these assets responsibly, for the benefit of all stakeholders. IAMGOLD and Managem will work closely towards a smooth transition of ownership.”

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