IAMGOLD Corporation (TSX: IMG) (NYSE: IAG), a mid-tier gold producer based in Toronto, has agreed to sell its African assets to Morocco’s Managem (CSE: MNG) for US$282 million.
IAMGOLD announced news of the agreement on Wednesday and it will be providing Managem with a series of exploration and development projects in Senegal, Guinea and Mali dubbed the “Bambouk assets.”
In accordance with the agreement, IAMGOLD will receive the total sum in cash payments.
“The sale of our Bambouk assets to Managem is the culmination of a comprehensive strategic review and sale process,” said Maryse Bélanger, Interim CEO of IAMGOLD.
“We are pleased that ownership of the Bambouk assets will be assumed by Managem, which has decades of mining development and operating experience in Africa and intends to advance these assets responsibly, for the benefit of all stakeholders.”
Chairman and CEO of Managem Imad Toumi added that the Morrocan company was happy to have sealed the deal for the Bambouk assets. He believes the transaction will add a worthwhile addition to Managem’s portfolio and help establish the company as a leader in Africa’s mining industry.
IAMGOLD is a Canadian gold company with operations spanning three continents. The company currently has three operating mines located in Canada, Suriname and Burkina Faso.
Managem is a subsidiary of Al Mada, a private investment fund. The company employs 6,000 people throughout several African countries including Morocco, Sudan, Gabon, Guinea, Burkina Faso and the Democratic Republic of the Congo.
IAMGOLD stock increased by 24 per cent today to $3.10 on the Toronto Stock Exchange.
Managem stock stayed flat at MAD$2,328 on the Casablanca Stock Exchange, the equivalent of $301.70.