IAMGOLD (NYSE: IAG) stock rose during pre-market trading Tuesday after the company wrapped up bought deal financing, raising US$300.24 million.
IAMGOLD (IAG) has completed a significant “bought deal” equity financing, resulting in the issuance of 72,000,000 common shares of the Company at US$4.17 per share. The offering generated aggregate gross proceeds of US$300.24 million, as announced by the Company. The offering, initiated on May 21, 2024, was facilitated by a syndicate of underwriters led by National Bank Financial Markets, BMO Capital Markets, and RBC Capital Markets.
IAMGOLD plans to utilize the net proceeds to repurchase the 9.7% interest in the Côté Gold Mine from Sumitomo Metal Mining Co. Ltd. This repurchase will enable IAMGOLD to regain its full 70% interest in the Côté Gold Mine. The company anticipates finalizing the repurchase before the end of the calendar year.
Until the completion of this repurchase, IAMGOLD plans to manage the net proceeds by depositing them in an interest-bearing account or using them to repay amounts drawn under its credit facility. This prudent cash management approach ensures the company maintains financial flexibility and readiness to complete the transaction efficiently.
IAMGOLD (NYSE: IAG) Stock Price Action
At 07:23 a.m. (Eastern Time) on Tuesday, IAG stock was trading at $4.05, reflecting a 1.25% increase from the previous trading session.
