iag Iamgold to acquire Trelawney for $3.30 per share
2012-04-27 06:36 ET - News Release
Also News Release (C-TRR) Trelawney Mining and Exploration Inc
Mr. Stephen Letwin of Iamgold reports
IAMGOLD EXPANDS GOLD PRODUCTION PIPELINE IN CANADA WITH ACQUISITION OF TRELAWNEY
Iamgold Corp. and Trelawney Mining and Exploration Inc. have entered into a definitive agreement whereby Iamgold will acquire, through a plan of arrangement, all of the issued and outstanding common shares of Trelawney. Trelawney is a Canadian junior mining and exploration company, focused on the development of the CAtAcopyright Lake Deposit located adjacent to the Swayze Greenstone Belt in northern Ontario.
Under the terms of the Agreement, each Trelawney shareholder will receive $3.30 in cash for each Trelawney share held. The transaction price represents a 36.6% premium based on Trelawney's 20-day volume weighted average price ("VWAP") for the period ending April 26, 2012.
"The acquisition of Trelawney creates a larger and more geographically balanced portfolio of long-life gold assets for Iamgold. This transaction provides an accretive return on invested capital as we are effectively redeploying the cash proceeds from the sale of non-core assets last year into a Canadian gold project that significantly strengthens our future gold production profile. This is consistent with our strategy to invest in development projects that we own and operate so we can derive maximum benefit from leveraging our operational and development expertise. Trelawney is an excellent strategic fit with our existing Canadian portfolio and we look forward to advancing this promising property," stated Stephen Letwin, President and Chief Executive Officer of Iamgold.
Trelawney's President and Chief Executive Officer Greg Gibson said, "Over the past three years, the Trelawney team has done a tremendous job in advancing the CAtAcopyright Lake Project to its current status. I want to take this opportunity to thank all Trelawney employees for their contributions to the discovery and advancement of CAtAcopyright Lake into a world class gold deposit. I am very proud of our success and the exceptional value that it has created for our shareholders. This acquisition will reward our shareholders with a significant premium that reflects this success."
Transaction Highlights