Iamgold (IAG) Acquires Common Shares Of TomaGold For $2.5M
Zacks Investment Research | Aug 15, 2017 10:05PM ET
Iamgold Corporation (TO:IAG) announced that it has acquired around 27.8 million common shares of TomaGold Corporation, or roughly 19.98% of the outstanding common shares of the latter, for $2.5 million or 9 cents per share. Prior to this transaction, the company did not own any common shares of TomaGold.
According to Iamgold, the company does not intend to acquire control of TomaGold through this deal. However, it will monitor the business, financial condition, prospects and potential capital requirements of the latter. Depending on the evaluation of these and other critical factors, Iamgold may decrease or increase its ownership in future.
Iamgold and TomaGold currently hold a 50:50 joint venture (JV) at the Monster Lake project, located southwest of Chibougamau, Quebec, Canada. Iamgold is the operator of this JV and it has the option to earn an additional 25% undivided interest for a total 75% undivided interest in the project by completing additional exploration expenditures by Jan 1, 2022.
The company has been conducting consecutive exploration campaigns on the property which is underlain by Archean volcanic rocks of the Obatogamau Formation. Iamgold is targeting high grade gold mineralization mainly along a 3 kilometer range of the Monster Lake Structural Corridor.
Shares of Iamgold have moved up 22.1% in the last three months versus the 1.6% decline of its Original post
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