All amounts are expressed in Canadian dollars, unless otherwise indicated
TSX: IMG NYSE: IAG
TORONTO, June 21, 2012 /PRNewswire/ - 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, Canada.
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 metres 1. "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." Footnotes 1 Trelawney mineral resource on a 100% basis, based on current mineral resource estimate. Refer below for complete reference to the Technical Report. Qualified Persons 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 project. 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 definitions.