IAMGOLD Reaches Agreement On Sale Of Niobec Mine - Quick Facts

(RTTNews) - IAMGOLD Corp. (IMG.TO, IAG) announced it has reached an agreement to sell its Niobec mine, one of the world's three niobium producers, to a group of companies led by Magris Resources Inc. The total consideration of $530 million for the deal is comprised of a cash payment of $500 million payable on closing, as well as an additional $30 million when the adjacent REE deposit goes into commercial production. A 2% gross proceeds royalty will be payable on any REE production.

The sale of Niobec, which is located in Saint-Honoré-de-Chicoutimi in the Saguenay-Lac-Saint-Jean region, Quebec, is to include the adjacent rare earth element deposit. The group of companies includes Magris Resources, as well as CEF Holdings Limited; which is a Hong Kong based investment company owned 50% by Cheung Kong (Holdings) Limited and 50% by the Canadian Imperial Bank of Commerce (CM.TO, CM); and Temasek, which is a Singapore-based investment company.

Based on current estimates, the company expects gain on the transaction to be approximately $50 million to $60 million. Niobec will be reclassified as "Held for Sale" for the purposes of IAMGOLD's fourth quarter 2014 results.