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Monday, 29th December 2008 (1506 views)

IAMGold has announced that it has signed a new definitive option agreement with Merrex Gold to earn a 50 per cent interest in the Siribaya gold project in west Africa.

The gold property in western Mali is 100 per cent controlled by Merrex and consists of 700 sq km covering two major regional structural trends with significant gold mineralisation potential.

Under the terms of the deal, IAMGold can earn an interest in Siribaya by spending CN$1.5 million over four years.

The gold mining company has completed a private placement of CN$1.5 million (£840,000) in Merrex by subscribing for 4,285,714 units, with each unit comprising one common share and one 12-month warrant.

IAMGold now holds 4,285,714 common shares of Merrex, representing around 6.47 per cent of its outstanding common share capital and potentially rising to 12.15 per cent under the new agreement.

Toronto-based IAMGold announced its eighth consecutive annual dividend payment to shareholders earlier this month.

 

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