IAMGOLD Acquires Vanstar Mining Resources, Boosts Stake in Nelligan Gold Project
TORONTO, February 13, 2024 – In a strategic move that consolidates its position within the gold mining sector, IAMGOLD Corporation (NYSE: IMG) announced the successful acquisition of Vanstar Mining Resources Inc., thereby gaining a 100% interest in the Nelligan Gold Project located in Quebec, Canada. This transaction, orchestrated through a court-approved plan of arrangement, has paved the way for IAMGOLD to issue approximately 11.99 million new shares, offering 0.20 IAMGOLD shares for each share of Vanstar.
The Nelligan Gold Project, situated 60 kilometers southwest of Chibougamau, Quebec, stands as a significant asset with IAMGOLD now having full ownership. This acquisition also grants IAMGOLD a 1% Net Smelter Return (NSR) royalty on select claims of the project, enhancing its portfolio with valuable early-stage exploration properties in Northern Quebec.
In addition to fortifying its assets in Quebec, IAMGOLD continues to progress with the Côté Gold project in Canada. This large-scale operation is anticipated to commence production in early 2024, underlining the company's growth trajectory and its commitment to bolstering gold production capabilities.
The corporation also emphasized its dedication to responsible mining practices, aligning with its Zero Harm® initiative that prioritizes environmental, social, and governance standards. With approximately 3,600 employees, IAMGOLD is positioned as an intermediate gold producer with a significant footprint in North America and West Africa.
Legal advisement for the acquisition was provided by Fasken Martineau Dumoulin LLP in Canada, and Paul Weiss Rifkind Wharton & Garrison LLP in the United States, ensuring compliance and strategic guidance throughout the transaction process.
This acquisition marks a pivotal moment for IAMGOLD, reinforcing its strategic position within the gold mining industry and highlighting the company's robust growth and governance standards. As IAMGOLD enhances its portfolio with the Nelligan Gold Project, it sets a new precedent for its operational and exploratory initiatives, promising a bright future for its stakeholders and the broader industry landscape.
Analyst comment
Positive news. IAMGOLD Corporation acquires Vanstar Mining Resources and gains full ownership of the Nelligan Gold Project in Quebec. This acquisition strengthens IAMGOLD’s position in the gold mining sector and adds valuable exploration properties. With the upcoming production of the Côté Gold project and commitment to responsible mining practices, IAMGOLD is poised for growth. Expect a positive impact on the market as the company expands its portfolio and solidifies its position in the industry.