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IAMGOLD Corporation (“IAMGOLD” or “the
Company”) today announced it has acquired 8,024,511 common shares and
1,500,000 warrants of Mexican Silver Mines Ltd. (“Mexican
Silver”), having had the same number of common shares and warrants of
Rio Alto Mining Limited (“Rio Alto”), immediately prior to the
amalgamation with Mexican Silver announced on June 29, 2009.
IAMGOLD now owns approximately 10.62% of the common shares of Mexican
Silver issued and outstanding and, if it were to exercise its warrants to
purchase common shares, would own approximately 12.36% of the common shares
of Mexican Silver issued and outstanding (on a partially diluted basis).
The acquisition of the common shares and warrants of Mexican Silver by
IAMGOLD were a result of an option and earn-in agreement entered into with
Rio Alto with respect to IAMGOLD’s La Arena copper/gold project in
Peru. The terms of the option and earn-in agreement provide Rio Alto with an
option to purchase all of the shares of La Arena S.A. held by IAMGOLD for
cash payments of US$47.55 million and the right to earn up to 38.7% of the
shares of La Arena S.A. by incurring expenditures of up to US$30 million on
the La Arena project.
IAMGOLD does not have any present intention to acquire ownership of,
or control over, additional securities of Mexican Silver. It is the intention
of IAMGOLD to evaluate its investment in Mexican Silver on a continuing basis
and such holdings may be increased or decreased in the future.
Forward Looking Statement
This press release contains forward-looking statements. All
statements, other than of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or may
occur in the future (including, without limitation, statements regarding the
estimation of mineral resources, exploration results, potential
mineralization, potential mineral resources and mineral reserves) are
forward-looking statements. Forward-looking statements are generally identifiable
by use of the words “may”, “will”,
“should”, “continue”, “expect”,
“anticipate”, “estimate”, “believe”,
“intend”, “plan” or “project” or the
negative of these words or other variations on these words or comparable
terminology. Forward-looking statements are subject to a number of risks and
uncertainties, many of which are beyond the Company’s ability to
control or predict, that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking statements.
Factors that could cause actual results or events to differ materially from
current expectations include, among other things, without limitation, failure
to establish estimated mineral resources, the possibility that future
exploration results will not be consistent with the Company's expectations,
changes in world gold markets and other risks disclosed in IAMGOLD’s
most recent Form 40-F/Annual Information Form on file with the US Securities
and Exchange Commission and Canadian provincial securities regulatory
authorities. Any forward-looking statement speaks only as of the date on
which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking statement.
For further information please contact:
IAMGOLD Corporation:
Joseph F. Conway
Tel: (416) 360-4712
Toll-free: 1 888 IMG-9999
Tamara Brown
Director, Investor Relations
Tel: (416) 360-4743
Toll-free: 1 888 IMG-9999
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