IAMGOLD Announces US$300 Million Bought Deal Financing

Core Viewpoint - IAMGOLD Corporation has announced a bought deal offering of 72 million common shares at a price of US $4.17 per share, aiming to raise approximately US$ 300 million, with the potential to increase to US $345 million if the over-allotment option is fully exercised [1][2]. Use of Proceeds - The net proceeds from the offering will be used to repurchase a 9.7% interest in the Côté Gold Mine from Sumitomo Metal Mining Co. Ltd., restoring IAMGOLD's ownership to 70% [2][4]. - Until the completion of the repurchase, the proceeds will be held in an interest-bearing account or used to repay amounts drawn under the credit facility [2][3]. Financial Context - The company believes that the net proceeds, combined with existing cash and expected cash flows, will be sufficient to fund the repurchase of the Transferred Interest [3][9]. - As of March 31, 2024, the financial liability for the Côté Gold Repurchase Option was US$ 366.8 million [9]. Joint Venture Background - The Côté Gold Mine operates as a joint venture between IAMGOLD and Sumitomo, with IAMGOLD holding a 60.3% interest and an option to repurchase the 9.7% interest [5][6]. - The repurchase option fee is based on the three-month Secured Overnight Financing Rate (SOFR) plus 4% on contributions made by Sumitomo [7]. Offering Details - The offering will be made in Canada (excluding Québec and Nunavut) and the United States, with the closing expected around May 24, 2024, subject to necessary approvals [11][12].