Home > News > IAMGOLD selling Quebec gold...

IAMGOLD selling Quebec gold mine to China

Oct 18, 2022

IAMGOLD Corporation has entered into a definitive agreement (the "Agreement") with Zijin Mining Group Co. Ltd. (SH:601899, SEHK:2899) ("Zijin") to sell its 95% interest in Rosebel Gold Mines N.V. ("Rosebel") for cash consideration of $360 million and release of IAMGOLD's equipment lease liabilities amounting to approximately $41 million (the "Transaction"). Rosebel holds a 100% interest in the Rosebel Gold Mine and a 70% participating interest in the Saramacca Mine, located in Suriname. The remaining 5% interest in Rosebel will continue to be held by the Government of Suriname.

Under the terms of the Agreement, IAMGOLD will receive cash consideration of $360 million for its 95% interest in Rosebel, subject to certain working capital adjustments on closing. In addition, IAMGOLD's obligations for certain equipment leases of Rosebel amounting to approximately $41 million will be released on Closing. The existing royalty on Rosebel held by Euro Ressources S.A. will remain an obligation of IAMGOLD.

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."

"Rosebel has been an important contributor to IAMGOLD and we are pleased that a company with the capabilities and reputation of Zijin, a leading global mining company, will be taking over this operation for the benefit of all stakeholders. We will work closely with Zijin to ensure a smooth transition," Maryse Bélanger further noted. 

The Transaction has the support of IAMGOLD's syndicate of lenders who have consented to the release of their security over Rosebel upon completion of the Transaction, and to the use by IAMGOLD of the full net sale proceeds towards the construction of the Côté Gold project. 

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. 

National Bank Financial and RBC Capital Markets are acting as financial advisors and Fasken Martineau Dumoulin LLP is acting as legal advisor to IAMGOLD in connection with the Transaction.


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. In addition, the Company has a robust development and exploration portfolio within high potential mining districts in the Americas and West Africa.

Tags: Quebec / Deals & Financial / Gold / All Articles