Repadre shareholders okay merger

Repadre Capital‘s (RPD-T) shareholders have given the nod to a plan that would see their company merge with Markham-based Iamgold (IMG-T).

Under the proposed deal, Repadre shares would be exchanged for 1.6 Iamgold shares.

More than 96% of the votes cast at Repadre’s special shareholders’ meeting were in favour of the deal.

The new Iamgold’s annual production would ring in at 450,000 oz. and attributable reserves would amount to 3.4 million oz., with a further 1.7 million oz. in resources. Cash and bullion would tally to about $125 million.

Iamgold’s key assets are a 38% stake in the Sadiola Hill mine, and a 40% interest in the Yatela mine, both in western Mali. During the first nine months of 2002, Sadiola poured 354,000 oz. gold at a total cash cost of US$161 per oz., and Yatela had churned out 197,000 oz. at US$147 per oz. Iamgold’s share of production was 213,000 oz.

Repadre brings to the table an 18.9% stake in the large open-pit and heap-leach Tarkwa-Damang operation in central Ghana. For the year ended June 30, Tarkwa poured 544,000 oz. at a total cash cost of US$180 per oz. The Damang open pit and mill produced 141,400 oz. at US$190 per oz.

Repadre also holds a portfolio of royalties in Canada and Latin America, including a 1% royalty on production from the Diavik diamond mine.

The merger still requires approval by the Ontario Superior Court of Justice, and is expected to wrap up by Jan. 7. Repadre’s shares would then be delisted from the Toronto Stock Exchange.

In the end, the new Iamgold would have some 141.4 million shares outstanding.