IAMGOLD Sells Niobec Mine for $500 Million

Bloomberg reported that IAMGOLD Corp. (TSX:IMG) is planning to sell its Niobec niobium mine and rare earths deposit in Quebec for up to $530 million. The mine will be sold to a group led by Magris Resources, established by the former CEO of Barrick Gold Corp. (TSX:ABX).

As quoted in the publication:

Iamgold will get $500 million in cash and $30 million when the rare-earth deposit goes into production, the Toronto-based company said today in a statement. Proceeds from the sale will allow Iamgold to invest in the expansion of its gold business or to reduce debt.

The miner had previously considered spinning off the Niobec mine or finding a partner to expand the project, which it acquired in 2006 when it bought Cambior Inc. for $1.08 billion. Gold companies have been under pressure to lower costs as the price of the precious metal has declined.

IAMGOLD CEO, Steve Letwin, said:

This sale unlocks the value of Niobec for our shareholders, positions Iamgold as a pure gold play and significantly improves our liquidity,

Click here to read the full Bloomberg article.