Iamgold has regained its full 70% ownership in the Côté gold mine in Canada after exercising its 9.7% repurchase rights under an amended joint venture (JV) agreement with Sumitomo Metal Mining.
The transaction, valued at approximately $377m, includes $23.7m accrued as a repurchase option fee during the year 2023.
The repurchase follows an agreement made in December 2022, which amended the original JV framework between Iamgold, Sumitomo, and SMM Gold Côté.
Under the revised terms, Sumitomo had agreed to fund portions of Iamgold’s commitments to the Côté gold project in 2023, amounting to approximately $340m.
In return, Iamgold transferred the stake in the project to Sumitomo, while retaining an option to repurchase the transferred stake within a designated timeframe.
The repurchase option allowed Iamgold to reclaim the transferred interest on one of seven specified dates between November 2023 and November 2026.
Iamgold president and CEO Renaud Adams said: “This transaction was very important for IAMGOLD, demonstrating our strong working relationship and our mutual belief in the potential of Côté.
“We are honoured to stand beside Sumitomo as we work together to advance and grow what we believe will be among Canada’s largest gold mines for decades to come. In the near term, Côté remains on track for exiting this year at 90% of nameplate throughput, positioning the project well to achieve full run rate next year.”
Located in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario, the Côté gold mine properties were assembled through staking and option agreements covering a total area of about 596km2.
Sumitomo continues to hold the remaining 30% interest in the project.
The first gold pour at the Côté project occurred in March this year, with the crushing, HPGR, and processing circuits meeting operational expectations. Commercial operations at the gold project started in August.
The open pit mine, which has a mine life of around 18 years, is expected to have a gold production of 205 tonnes of gold.
