GOLD MINING: IamGold sells Tarkwa and Damang mine for $667-M cash

GHANA - Toronto-based IamGold Corp. is selling its 18.9% interest in the Tarkwa and Damang gold mines in Ghana for $667 million cash. The purchaser is South Africa's Gold Fields, which will hold 90% of the mines when the deal is completed in July. IamGold's share of production from Tarkwa and Damang was 182,000 oz in 2010.

IamGold president and CEO Steve Letwin said it is the company intends to invest primarily in mines it owns and operates. "Upon completion of this transaction," he said, "we will have more than one billion dollars in cash, cash equivalents and gold bullion."

Other mines that IamGold operates include Rosebel (Surinam), Essakane (Burkina Faso), Doyon and Sleeping Giant (Ontario) and Mupane (Botswana). The company also has joint ventures and working interests in Sadiola and Yatela (Mali). It also has advanced exploration projects at Buckreef and Kitongo (Tanzania), Camp Caiman (French Guiana), Quimsacocha (Ecuador) and Siribaya (Mali). Cash costs including royalties for 2010 were US$574/oz of gold.

Details are available at www.IamGold.com.