(Reuters) – Canadian gold miner Iamgold Corp shares surged 16% on Tuesday after it decided to sell 95% stake in Rosebel Gold Mines unit in northeastern Suriname to China’s Zijin Mining Group Co Ltd for about $401 million.
The Toronto-based company said the proceeds from the sale will be used to construct its flagship Côté Gold project in Canada so that it can stay on track to begin production in early 2024.
The Rosebel Gold Mine N.V. unit holds a mine in Suriname of the same name as well as a 70% interest in the Saramacca Mine, Iamgold said, adding the country’s government will continue to hold the remaining 5% interest in the unit.
The $401 million sale consists of $360 million in cash as well as a release of Iamgold’s equipment lease liabilities amounting to about $41 million. The deal is expected to close early in the first quarter of next year.
The company’s Toronto-listed shares were trading at C$1.70.
(Reporting by Ruhi Soni in Bengaluru; Editing by Arun Koyyur)
