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.
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.
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.
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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”.”