IAMGOLD Signs Agreement to Acquire 100 Percent of Merrex Gold

IAMGOLD (TSX:IMG) has announced that it has signed a definitive agreement with Merrex Gold (TSXV:MXI) to acquire all of the issued and outstanding shares of Merrex not already owned by IAMGOLD.
As quoted in the press release:

Merrex is a junior mineral exploration company of which IAMGOLD currently owns approximately 45.8 million or 23% of Merrex’s issued and outstanding 199.2 million common shares.  IAMGOLD expects to issue 6.9 million shares, amounting to less than 1.5% of its issued and outstanding shares, in connection with the Transaction. The Transaction is expected to close in the first quarter of 2017.
“This agreement consolidates the ownership of a key asset in IAMGOLD’s exploration pipeline,” said Steve Letwin, IAMGOLD’sPresident & CEO.  “The IAMGOLD exploration team, led by Craig MacDougall, working in concert with Merrex on the Diakha-Siribaya project in Mali has done an outstanding job over recent years to define indicated resources of 2.1 million tonnes grading 1.90 g/t Au for 129,000 ounces and inferred resources of 19.8 million tonnes grading 1.71 g/t Au for 1.1 million ounces.  Mali is a prolific mining friendly jurisdiction and is where IAMGOLD began nearly 25 years ago at the Sadiola project which, along with its neighbouring Yatela mine, has already produced over 7.5 million ounces of gold.”

Click here to read the full press release.