All amounts are expressed in Canadian dollars, unless otherwise
TSX: IMG NYSE: IAG
TORONTO, June 21, 2012 /CNW/ - IAMGOLD Corporation (TSX:IMG NYSE: IAG)
("IAMGOLD" or "the Company") and Trelawney Mining and Exploration Inc.
(TSX Venture:TRR) ("Trelawney") announced that on June 21, 2012,
IAMGOLD completed the acquisition of all of the issued and outstanding
common shares of Trelawney through a plan of arrangement (the
"Transaction"). Under the terms of the Transaction, former shareholders
of Trelawney are entitled to $3.30 in cash for each common share of
Trelawney held. It is expected that the common shares of Trelawney will
be delisted from the TSX Venture Exchange on or about June 25, 2012.
The main asset acquired in this transaction is the Côté Lake Project
located adjacent to the Swayze Greenstone Belt in northern Ontario,
Stephen Letwin, President and Chief Executive Officer of IAMGOLD, said,
"With this transaction complete we can now capitalize on the thousands
of hours we spent over the last year evaluating this project and can
leverage our developmental and operational expertise to realize the
shareholder return potential identified by our analysis. The Côté Lake
Project adds immediately to our mineral resources, strengthens our
five-year production growth forecast and has a construction timetable
that dovetails into our capital plans for expanding our existing
operations. Côté Lake also rebalances our resource and potential
production portfolios to having a higher percentage of assets in North
America and a higher percentage of assets that we own and operate."
Trelawney's President and Chief Executive Officer Greg Gibson said,
"Trelawney's employees have accomplished something special in the
discovery of Côté Lake. I would like to thank Trelawney's board of
directors and everyone involved for their hard work and dedication
during the past three years. I would also like to thank our
shareholders for their backing and support. I wish IAMGOLD all the best
moving the project into the next phase; it is in good hands."
Gordon Stothart, Executive Vice President and Chief Operating Officer of
IAMGOLD, stated, "Since the announcement of this acquisition, we have
met several times with the Trelawney team and are already well advanced
on our transition planning. We have also held positive meetings with
the First Nations' People in the Côté Lake region and intend to build
upon the excellent work initiated by Trelawney."
On February 24, 2012, Trelawney announced an updated mineral resource
estimate for Côté Lake, comprising 35 million tonnes at 0.82 g/t gold
for 0.93 million ounces of indicated resources and 204 million tonnes
at 0.91 g/t gold for 5.94 million ounces of inferred resources.
Mineralization at Côté Lake has been intersected over a strike length
of 1,200 metres, a horizontal width of 100 - 300 metres and a depth
extent of more than 500 metres1.
"The next steps for this project include the preparation of a NI 43-101
technical report by mid-October 2012, which should encompass infill
drilling results up to and including early July 2012," added Mr.
Stothart. "We expect to begin a pre-feasibility study for this project
by the fourth quarter of 2012."
1 Trelawney mineral resource on a 100% basis, based on current mineral
resource estimate. Refer below for complete reference to the Technical
Geoffrey Chinn P.Geo., Manager Resource Geology of IAMGOLD and David
Beilhartz P.Geo, Vice-President Exploration of Trelawney, both
Qualified Persons as defined under National Instrument 43-101, have
reviewed and approved this disclosure having current knowledge of the
Scientific and Technical Disclosure
For complete disclosure of the Trelawney mineral resource estimate refer
to the Technical Report on the Côté Lake Resource Update, Chester
Property, Ontario, Canada reported in accordance with National
Instrument 43-101 requirements, signed by W. Roscoe and B. Cook, Roscoe
Postle Associates Inc., effective February 24, 2012.
Mineral resource estimates are reported in accordance with the CIM
Investors are cautioned that mineral resources are not mineral reserves
and do not have demonstrated economic viability.
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 or Trelawney believes, expects or
anticipates will or may occur in the future (including, without
limitation, statements regarding the expected benefits of acquiring
Trelawney, 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", "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 and Trelawney's
ability to control or predict, that may cause the actual results of the
Company or Trelawney to differ materially from those discussed in the
forward-looking statements. In respect of the Company, factors that
could cause actual results or events to differ materially from current
expectations include, among other things, without limitation, failure
to realize the benefits of the acquisition of Trelawney, to meet
expected, estimated or planned gold and niobium production, cash costs,
margin expansion, capital expenditures and exploration expenditures and
failure to establish estimated mineral resources, the possibility that
future exploration results will not be consistent with the Company's
expectations, changes in world gold markets and other risks disclosed
in IAMGOLD's most recent Form 40-F/Annual Information Form on file with
the United States Securities and Exchange Commission and Canadian
provincial securities regulatory authorities. In respect of Trelawney,
factors that could cause actual results or events to differ materially
from current expectations include, among other things, the timing and
content of upcoming work programs, geological interpretations, receipt
of property titles, potential mineral recovery processes and other
risks disclosed in Trelawney's filings with Canadian provincial
regulatory authorities. Any forward-looking statement speaks only as
of the date on which it is made and, except as may be required by
applicable securities laws, the Company and Trelawney disclaim any
intent or obligation to update any forward-looking statement.
Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission limits disclosure
for U.S. reporting purposes to mineral deposits that a company can
economically and legally extract or produce. IAMGOLD uses certain
terms in this presentation, such as "measured," "indicated," or
"inferred," which may not be consistent with the reserve definitions established by the SEC.
U.S. investors are urged to consider closely the disclosure in the
IAMGOLD Annual Reports on Forms 40-F. You can review and obtain copies
of these filings from the SEC's website at http://www.sec.gov/edgar.shtml or by contacting the Investor Relations department.
IAMGOLD (www.iamgold.com) is a leading mid-tier gold mining company producing approximately one
million ounces annually from five gold mines (including current joint
ventures) on three continents. In the Canadian province of Québec, the
Company also operates Niobec Inc., which produces more than 4.5 million
kilograms of niobium annually, and is exploring for rare earth elements
close to its niobium mine. IAMGOLD is uniquely positioned 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 in
certain regions in Canada, select countries in South America and
Trelawney is a Canadian junior mining and exploration company with a
growth-oriented strategy focused on expanding its gold resources and
developing its Canadian mineral properties. The company's current focus
is directed towards the development and continued exploration of its
Côté Lake Project, located in Northern Ontario.
Neither the TSX Venture Exchange nor its Regulation Services Provider
accepts responsibility for the adequacy or accuracy of this news
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
For further information:
Bob Tait, VP Investor Relations, IAMGOLD Corporation
Tel: (416) 360-4743 Mobile: (647) 403-5520
Laura Young, Director, Investor Relations, IAMGOLD Corporation
Tel: (416) 933-4952 Mobile: (416) 670-3815
Toll-free: 1-888-464-9999 Email: firstname.lastname@example.org
Dave Reid, VP Investor Relations, Trelawney Mining and Exploration Inc.
Tel: (416) 363-8567 ext. 104 Mobile: (705) 254-8303 Email: email@example.com