TSX: IMG NYSE: IAG
TORONTO, April 15, 2013 /CNW/ - IAMGOLD Corporation ("IAMGOLD" or the "Company") announced on November 26, 2012 that it had
reached a definitive agreement (the "Agreement") with the Government of
the Republic of Suriname (the "Government") addressing future resource
development and related power costs. On April 13, 2013, the Agreement
was approved by the legislative authority of Suriname, the National
Assembly. The Agreement will, once executed, amend the existing
Mineral Agreement regarding the Company's Rosebel mine in Suriname.
IAMGOLD President and CEO, Steve Letwin, said, "The approval of this
Agreement by Suriname's National Assembly validates the work over the
last year and half by the Government and IAMGOLD to ensure a longer and
stronger future for the Rosebel mine for the mutual benefit of the
people of Suriname and the shareholders of the Company. Access to new
concessions creates ample opportunity to add to the life of the Rosebel
Gold Mine and to find softer ore which can be processed at lower
cost. The lower rate for power brings more gold mineral resources
into economic viability for the mutual benefit of our shareholders and
the people of Suriname. The Agreement reflects a true spirit of
partnership between the Government and the Company."
With this Agreement, IAMGOLD will maintain all of its existing
entitlements in the Rosebel operations and in the Gross Rosebel
exploitation concession and will extend the term of its existing
Mineral Agreement by 15 years to 2042. The Agreement will further
establish a new joint venture growth vehicle (the "JV") under which
Rosebel would hold a 70% participating interest and the Government will
acquire a 30% participating interest on a fully-paid basis.
The Agreement will provide up to 300 x 106 kWh per year of additional power at a cost of 11 cents per kilowatt
hour, which will apply to any production from the joint venture area.
The JV area has been defined as a circular area extending 45 kilometres
from the Rosebel mill, but excluding the Gross Rosebel concession, for
a net JV area of approximately 6,190 km2. The JV will be entitled to convert an additional 20,000 hectares or
200 km2 to new rights of exploitation within the joint venture area, on a
simplified and expedited basis, for processing at Rosebel. Under the
terms of the Agreement all future production from the joint venture
area will be allocated to the JV on a 100% basis.
The JV will also allow both Rosebel and the Government to share on the
same basis as above in any further significant expansion at Rosebel.
Rosebel, which is also evaluating the expansion of its gold plant
throughput capacity from 12 million to 14 million milled tonnes per
annum, is planning to undertake a feasibility study on the potential
for a further significant expansion which, if approved, the Government
will have the right to acquire an interest through the JV at fair
market value. Rosebel will be entitled to proceed with the expansion
on its own if the Government does not participate through the JV, and
in either case will have access to the lower cost power rate for the
expansion.
The Government recognizes the importance of lower cost power to Rosebel
for its existing base capacity in light of the transition to hard rock
material. With negotiations of the definitive agreement concluded,
discussions with the Government on lower power costs for that base
capacity will be pursued as a priority in 2013.
Forward Looking Statement
This news release contains forward-looking statements. All statements,
other than of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements
regarding expected, estimated or planned gold and niobium production,
cash costs, margin expansion, capital expenditures and exploration
expenditures and statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential
mineral resources and mineral reserves) are forward-looking statements.
Forward-looking statements are generally identifiable by use of the
words "may", "will", "should", "continue", "expect", "anticipate",
"outlook", "guidance", "estimate", "believe", "intend", "plan" or
"project" or the negative of these words or other variations on these
words or comparable terminology. Forward-looking statements are subject
to a number of risks and uncertainties, many of which are beyond the
Company's ability to control or predict, that may cause the actual
results of the Company to differ materially from those discussed in the
forward-looking statements. Factors that could cause actual results or
events to differ materially from current expectations include, among
other things, without limitation: changes in the global prices for
gold, niobium, copper, silver or certain other commodities (such as
diesel, aluminum and electricity); changes in U.S. dollar and other
currency exchange rates, interest rates or gold lease rates; risks
arising from holding derivative instruments; the level of liquidity and
capital resources; access to capital markets, financing and interest
rates; mining tax regimes; ability to successfully integrate acquired
assets; legislative, political or economic developments in the
jurisdictions in which the Company carries on business; operating or
technical difficulties in connection with mining or development
activities; laws and regulations governing the protection of the
environment; employee relations; availability and increasing costs
associated with mining inputs and labour; the speculative nature of
exploration and development, including the risks of diminishing
quantities or grades of reserves; adverse changes in the Company's
credit rating; contests over title to properties, particularly title to
undeveloped properties; and the risks involved in the exploration,
development and mining business. With respect to development projects,
IAMGOLD's ability to sustain or increase its present levels of gold
production is dependent in part on the success of its projects. Risks
and unknowns inherent in all projects include the inaccuracy of
estimated reserves and resources, metallurgical recoveries, capital and
operating costs of such projects, and the future prices for the
relevant minerals. Development projects have no operating history upon
which to base estimates of future cash flows. The capital expenditures
and time required to develop new mines or other projects are
considerable, and changes in costs or construction schedules can affect
project economics. Actual costs and economic returns may differ
materially from IAMGOLD's estimates or IAMGOLD could fail to obtain the
governmental approvals necessary for the operation of a project; in
either case, the project may not proceed, either on its original timing
or at all.
About IAMGOLD
IAMGOLD (www.iamgold.com) is a leading mid-tier gold producer with six operating gold mines
(including current joint ventures) on three continents. In the Canadian
province of Québec, the Company also operates Niobec Inc., one of the
world's top three producers of niobium, and owns a rare earth element
resource close to its niobium mine. IAMGOLD is well positioned for
growth with a strong financial position and extensive management and
operational expertise. To grow from this strong base, IAMGOLD has a
pipeline of development and exploration projects and continues to
assess accretive acquisition opportunities. IAMGOLD's growth plans are
strategically focused on certain regions in Canada and select countries
in South America and Africa.
Please note:
This entire news release may be accessed via fax, e-mail, IAMGOLD's
website at www.iamgold.com and through CNW Group's website at www.newswire.ca. All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.
Si vous désirez obtenir la version française de ce communiqué, veuillez
consulter le http://www.iamgold.com/French/Home/default.aspx.
SOURCE: IAMGOLD Corporation
