AngloGold, Iamgold buy IFC's Sadiola stake

Gold-miners AngloGold Ashanti and Iamgold have each bought half of the 6% stake that the International Finance Corporation (IFC) owns in their Sadiola mine, in Mali.
The companies will each pay an initial $6-million for their respective 3% stake, followed by contingent payments in 2010, 2011 and 2012 of $250 000 for each year in which the average gold price is higher than $900/oz, or $500 000 if the average gold price exceeds $1 000/oz.
They will also pay another $500 000 if and when a decision is made to go ahead with the Sadiola deep sulphide project.
Iamgold and AngloGold Ashanti owned 38% each in Sadiola, but have now increased their stakes to 41% each.

"The acquisition of an additional 3% share in Sadiola illustrates the confidence we have in the future of this mine," Iamgold CEO Joseph Conway said in a statement.

In November, Iamgold said that it had agreed to buy all 6% that the IFC owned in Sadiola, but that AngloGold and the government of Mali had pre-emptive rights to take up their proportionate share of the holding.
AngloGold and Iamgold have also offered to sell the Malian government a 1,2% stake in Sadiola, on terms proportionately the same as the IFC transaction.

The government currently owns 19,15%.

In November, the partners approved a $9-million feasibility study on developing the large deep sulphide resource below the current pit at the Sadiola mine.

The current Sadiola mine plan estimates production of 350 000 oz of gold for 2009, but output will decline until the end of the life-of-mine in 2015.
A prefeasibility study on the deep sulphides project estimated production could be increased to between 400 000 oz and 500 000 oz/y, with an end of life-of-mine in 2019.
This would boost the total gold production at Sadiola by around 2,2-million ounces beyond the current mine plan.

Although AngloGold is the operator of the mine, Iamgold has taken the lead this year in studying the deep sulphides potential.