An Ontario judge has ruled in favour of
In 1990, Kinbauri and Imagold had planned to amalgamate, but the plan went off the rails a short time later. In 1991, Kinbauri commenced legal action, claiming breach of contract and/or damages of $10 million.
Under the terms of the proposed amalgamation, Kinbauri was to have received 2 million Iamgold shares, which equates to 469,238 shares following the 1995 consolidation.
Iamgold intends to appeal the decision. Kinbauri, meanwhile, has instructed its lawyer to determine which remedies or damages it should seek as compensation.
Iamgold is a 38% owner of SEMOS, a Malian company that operates the Sadiola Hill gold mine in the West African nation. Last year, the US$303-million, open-pit operation churned out 506,113 oz. gold at an average cash cost of US$104 per oz. and a total cost of US$126 per oz.
In the latest quarter ended March 31, Sadiola Hill produced 116,149 oz. at a cash cost of US$115 per oz., compared with 131,778 oz. at US$101 per oz. a year earlier. Total cash costs were US$137 per oz., compared with US$124 per oz. in the first quarter of 1998.
Iamgold also owns other advanced gold projects in West Africa, as well as exploration projects in other parts of Africa and in South America.
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