M&A

2 November, 2009

UPDATE1-Iamgold to proceed with African mine feasibility study

* To proceed with feasibility study at Sadiola Gold mine

* To buy IFC's 6 pct stake in Sadiola for $12 mln

Nov 2 (Reuters) - Canadian precious metals miner Iamgold Corp (IMG.TO) said it received an approval to proceed with the $9 million feasibility study at Sadiola Gold mine in Mali, West Africa.

Iamgold said it received approval from Societe D'Exploitation Des Mines D'Or De Sadiola (Semos), owner of the mine.

Iamgold also said it signed a tentative deal to buy International Finance Corp's (IFC) 6 percent stake in Sadiola for $12 million.

The pre-feasibility study projects gold production at Sadiola of between 400,000 and 500,000 ounces per year with an end of mine life in 2019, increasing the total production by about 2.2 million ounces beyond the current mine plan.

Shares of Toronto-based Iamgold were up 16 Canadian cents at C$14.51 Monday morning on the Toronto Stock Exchange. (Reporting by R. Manikandan in Bangalore; Editing by Maju Samuel)

Source: http://www.reuters.com