Iamgold (TSX: IMG; NYSE: IAG) announced on Monday that it had exercised its right to repurchase a 9.7% interest in the Côté gold mine in northern Ontario from Sumitomo Metal Mining.
With the move, the miner returned to its 70% stake in the project in Ontario. The transaction was finalized on Nov. 30.
In December 2022, Iamgold and Sumitomo amended their Côté Gold joint venture agreement, which resulted in Sumitomo acquiring a 9.7% stake.
As part of this agreement, Iamgold retained a right of repurchase, which it has now exercised, completing the repurchase of Sumitomo’s shares for $377 million. This amount includes a $23.7 million fee for the repurchase option, which had accrued during 2023.
“In the near term, Côté remains on track for exiting this year at 90% of nameplate throughput, positioning the project well to achieve full run rate next year,” CEO Renaud Adams said in a release.
Côté will be Canada’s third-largest gold operation once at full capacity. In the first six years of production, Côté Gold’s expected annual gold output is set at 495,000 ounces. Over the life of the mine, it will average 365,000 oz. per year.
Located 125 km southwest of Timmins, Côté produced its first doré bar in April, achieving commercial production in August.
Total gold production from Côté this year is expected to be 220,000-290,000 ounces.
In addition to Côté, Iamgold operates two other mines — Essakane in Burkina Faso and Westwood in Quebec.
Shares of Iamgold fell 0.7% to $7.66 apiece on Monday morning in Toronto, giving the miner a market capitalization of $4.2 billion.
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