IAMGOLD has signed an agreement to sell its 18.9% interest in Tarkwa and Damang gold mines in Ghana, West Africa, to Gold Fields for $667 million. This deal is likely to be completed before July 31, 2011.
This transaction is primarily one of the many proposed projects in order to make a value for the shareholders. The company cannot use its ability and experience for developing and working the mines, if they are not operating and having only a minority interest in the property. IAMGOLD has planned to invest in the mines, which they possess to give best results for the shareholders. Once the deal is completed, then the company will hold above one billion dollars in cash, cash counterparts and gold bars. Also, the company has $350 million undrawn credit facility.
In 2010, IAMGOLD has produced 139,000 ounces of gold from the Tarkwa mine and 43,000 ounces from Damang mine. The company has planned to provide details of its production guidance due to the transaction.
Source: http://www.iamgold.com/