IAMGOLD completes US$34.2 million sale of Mupane Gold Mine

IAMGOLD Corporation (TSX:IMG)(NYSE:IAG), a mid-tier gold mining company, has completed the sale of its Mupane Gold Mine in Botswana to Galane Gold Ltd. (TSX VENTURE:GG). IAMGOLD received total consideration of US$34.2 million, after adjustments, consisting of US$12.5 million in cash, US$17.9 million in common shares of Galane Gold and a US$3.8 million promissory note, payable over 3 years at an annual interest rate of 6%. IAMGOLD acquired the shares pursuant to the terms of an amended and restated share purchase agreement. In addition, IAMGOLD entered into: (i) a registration rights agreement with Galane, (ii) an escrow agreement with Equity Financial Trust Company, as escrow agent, and certain other security holders of Galane, and (iii) a lock-up agreement with Canaccord Genuity Corp. IAMGOLD was advised in this matter by a team of Fasken Martineau lawyers that included Aaron Atkinson, Michael Gleeson, Laurie Turner and Michael Bourassa.