Published on 7 Dec 2023 on Zacks via Yahoo Finance
Iamgold Corporation IAG announced that it has entered into a definitive arrangement agreement to acquire all of the issued and outstanding common shares of Vanstar Mining Resources Inc. This deal consolidates IAG’s stake in the Nelligan deposit and expands its exploration portfolio in Northern Quebec. Moreover, the transaction will position Iamgold for sustained growth and resource expansion, laying a robust foundation for future endeavors.Vanstar is a gold exploration company that has facilities in Northern Quebec at various stages of development. Its major asset is a 25% interest in the Nelligan Joint Venture Project, which is located 60 kilometers southwest of Chibougamau, Quebec, Canada. The project is held under an earn-in option to the joint venture agreement with IAG.Under the existing joint venture deal, Iamgold holds the choice to gain an extra 5% stake by finalizing a feasibility study. Meanwhile, Vanstar's remaining 20% interest remains as an undivided non-contributory carried interest until the project reaches commercial production. At that stage, the 20% interest transforms into a participating one, obligating Vanstar to cover its share of development costs, sourced from 80% of joint venture distributions, until commercial production begins.IAG announced an updated Mineral Resource Estimate for Nelligan on Jan 12, 2023. It has 72.2 million tons of Indicated Mineral Resources averaging 0.85 grams of gold per ton for 1.97 million ounces of gold and 114.1 million tons of Inferred Mineral Resources averaging 0.88 grams of gold per ton for 3.24 million ounces of gold.The company posted an adjusted loss of 1 cent per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 2 cents. The company reported a loss of 5 cents in the year-ago quarter. Revenues decreased 11.8% year over year to $225 million in the third quarter of 2023. The decline was due to lower sales volume, partially offset by higher realized gold prices.
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