This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

IAMGOLD Completes Acquisition Of Trelawney

Stocks in this article: IAG

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs