IAMGOLD Enters Agreement To Sale of La Arena

TORONTO, ON - IAMGOLD Corporation reported that it has entered into an agreement for the sale of its Peruvian development copper / gold project, La Arena, to Rio Alto Mining Limited ("Rio Alto") for US$47.55 million in cash and a 5.5% interest in Rio Alto. This transaction is expected to close in the coming months.
"The sale of La Arena is part of the rationalization of IAMGOLD's non-core assets and we believe that Rio Alto will be successful in advancing the project to production," stated Joseph Conway, President & CEO. "The 5.5% ownership interest acquired as part of this transaction will provide IAMGOLD the opportunity to participate in the future success of La Arena. The proceeds from this transaction will build on the existing financial strength of IAMGOLD and will facilitate future growth and our goal to double gold production over the next five years."
La Arena is a copper/gold porphyry deposit located in the district of Huamachuco in northern Peru. The internal pre-feasibility study on this development project was completed in November 2006. The project contains measured and indicated resources of 1.1 billion pounds of copper and 2.0 million ounces of gold.
The company's address is 401 Bay street, Suite 3200, PO Box 153, Toronto, ON M5H 2Y4, (416) 360-4710, fax: (416) 360-4750, email: [email protected].