Canadian gold miner IAMGOLD Corporation has agreed to sell its 95% interest in Rosebel Gold Mines to Chinese mining company Zijin Mining Group for $360 million in cash.

The transaction also consists of the release of equipment lease liabilities worth approximately $41 million of IAMGOLD.

The Government of Suriname owns the remaining 5% stake in Rosebel Gold Mines, which owns a 100% interest in the Rosebel Gold Mine. Rosebel Gold Mines also holds a 70% participating interest in the Saramacca Mine, located in Suriname.

Maryse Bélanger — IAMGOLD Chair of the Board and Interim President and CEO said: “This transaction represents a significant step forward in pursuing IAMGOLD’s strategy of disciplined portfolio management as we look to create value for shareholders through a focus on core assets.

“The proceeds of the sale will be invested in the ongoing construction of our flagship Côté Gold project — a strong positive step towards addressing our funding commitments to deliver the Côté Gold project on the updated schedule for production in early 2024.”

Located in the mineral-rich Brokopondo district in northeastern Suriname, the Rosebel gold mine started commercial production in 2004.

Covering 170km, the mining concession is situated approximately 85km south of the capital city of Paramaribo.

Maryse Bélanger added: “Rosebel has been an important contributor to IAMGOLD and we are pleased that a company with the capabilities and reputation of Zijin, a leading global mining company, will be taking over this operation for the benefit of all stakeholders. We will work closely with Zijin to ensure a smooth transition.”

The transaction is expected to be completed early in the first quarter of 2023 or earlier, subject to certain regulatory approvals, including the receipt of approvals from the relevant authorities in the People’s Republic of China.

It is also subject to approval for the transfer of licenses from the Government of Suriname.

National Bank Financial and RBC Capital Markets are serving as financial advisors to IAMGOLD in connection with the transaction, while Fasken Martineau Dumoulin LLP is acting as its legal advisor.

  China, Côté Gold Project, IAMGOLD, RBC Capital Markets, Rosebel Gold Mine, Rosebel Gold Mines, Saramacca Mine, Suriname, Zijin Mining