RE: More Iamgold manuveringIamgold has $1 bln war chest after Africa sale
* Sells 18.9 pct stake in Tarkwa and Damang gold mines
* Says sale is first of several initiatives
* Shares down 3.55 pct in early trade in Toronto
By Pav Jordan
TORONTO, April 15 (Reuters) - Canadian mid-tier gold minerIamgold Corp (IMG.TO: Quote) said on Friday its war chest forexpansion has grown to more than $1 billion with the sale ofstakes in two West African mines.
Iamgold agreed to sell its 18.9 percent stake in the Tarkwaand Damang gold mines in Ghana to Gold Fields Limited (GFIJ.J: Quote),world's fourth-largest gold producer, giving it $667 milliononce the transaction is complete. That is in addition to a $350million undrawn credit facility.
"Upon completion of this transaction, we will have morethan one billion dollars in cash, cash equivalents and goldbullion (at market)," Iamgold Chief Executive Steve Letwin saidin announcing the deal. [ID:nL3E7FF1UX]
"This sale is the first of several strategic initiatives tocreate value for our shareholders," he said.
Iamgold is bolstering its financial strength at a time ofaggressive merger and acquisition activity in the global goldsector, driven by safe-haven buying that has driven the priceof the precious metal to record levels.