IAMGOLD Corp. and Trelawney Mining and Exploration have announced they have entered into a definitive agreement whereby IAMGOLD will acquire, through a plan of arrangement, all of the issued and outstanding common shares of Trelawney.
Trelawney is a Canadian junior mining and exploration company, focused on the development of its main asset, the Côté Lake Deposit located adjacent to the Swayze Greenstone Belt, 20 kilometres southwest of Gogma.
Under the terms of the agreement, each Trelawney shareholder will receive $3.30 in cash for each Trelawney share held. The transaction price represents a 36.6 per cent premium based on Trelawney’s 20-day volume weighted average price for the period ending April 26, 2012.
“The acquisition of Trelawney creates a larger and more geographically balanced portfolio of long-life gold assets for IAMGOLD,” said Stephen Letwin, president and chief executive officer of IAMGOLD.
“This transaction provides an accretive return on invested capital as we are effectively redeploying the cash proceeds from the sale of non-core assets last year into a Canadian gold project that significantly strengthens our future gold production profile. This is consistent with our strategy to invest in development projects that we own and operate so we can derive maximum benefit from leveraging our operational and development expertise.”
Trelawney’s President and Chief Executive Officer Greg Gibson said, “Over the past three years, the Trelawney team has done a tremendous job in advancing the Côté Lake Project to its current status. I am very proud of our success and the exceptional value that it has created for our shareholders. This acquisition will reward our shareholders with a significant premium that reflects this success.”
Assuming Trelawney shareholders approve the transaction at the special meeting and final court approvals are obtained, the transaction is expected to close by the end of June.