IAMGOLD Corporation (IMG.TO, IAG) overnight said it has finalized a five-year option agreement with Sarafina N.V. under which IAMGOLD’s subsidiary, Rosebel Gold Mine may earn a 100% interest in Sarafina’s 10,000 hectare mining concession, located 25 kilometres from the Rosebel Gold Mine in Suriname.
The company said it may exercise its right to purchase the property at any time for a cash purchase price of US$1 million. To maintain this purchase option, RGM is required to make scheduled option payments totaling US$575,000 over five years. IAMGOLD may elect to terminate the Agreement at any time. Should the project proceed to production, Sarafina N.V. shall be paid a NSR royalty of 1.6% for any gold produced from this property.
Suggested Reading: Poorest States in America