Iamgold will serve as the operator of the Côté gold project. Credit: Francesco Bovolin from Pixabay.

Iamgold has agreed to amend its Côté Gold joint venture agreement with Sumitomo Metal Mining and SMM Gold Cote.

As part of the agreement, Sumitomo will contribute certain funding amounts to Côté Gold Project in Ontario, Canada that in aggregate have about $340m during 2023. This is effective from January 2023.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

In exchange, Iamgold will transfer about 10% interest in Côté to SMM as funding is made by SMM, subject to the right for IAMGOLD to repurchase the Transferred Interests pursuant to the terms of the agreement.

Following the funding, Iamgold will transfer a total of about 10% stake in Côté to SMM.

Furthermore, Iamgold will pay a repurchase option fee to SMM and have the right to exercise the repurchase option between 30 November 2023 and 30 November 2026, to return to its full 70% interest in the Côté gold project.

See Also:

Iamgold will serve as the operator of the Côté gold project, which is located in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The project is planned to be commissioned in the first quarter 2024.

In a press statement, IAMGOLD said: “Iamgold may exercise its option through the payment of the aggregate amounts advanced by Sumitomo in respect of the Transferred Interests, subject to certain adjustments as set out in the Agreement relating to the period between initial gold production and commercial production. Such terms are discussed further below and set out in detail in the Agreement.”

Sumitomo Metal Mining president and representative director Akira Nozaki said: “The Côté Gold Project has the potential to become a world-class, low-cost, long-life gold mine, and is one of the major pillars of Sumitomo Metal Mining’s growth strategy outlined in our “2021 3-Year Business Plan”.”