Managem acquires Boto gold project in Senegal

Managem has announced the purchase of Boto gold project in Senegal. The mining company sealed a US $197million deal with IAMGOLD Corporation for the project acquisition.

The deal is part of a transaction last year to buy the assets of Canada’s Iamgold, which also include mines in Mali and Guinea. Under the terms of the agreements, IAMGOLD will receive total cash payments of approximately $282 million as consideration for the shares and subsidiary/intercompany loans for the entities that hold the Company’s 90% interest in the Boto Gold Project (“Boto”) in Senegal and 100% interest in each of: the Diakha-Siribaya Gold Project in Mali, Karita Gold Project and associated exploration properties in Guinea, and the early stage exploration properties of Boto West, Senala West, Daorala and the vested interest in the Senala Option Earn-in Joint Venture also in Senegal.

Intercompany loans

The remaining 10% of Boto will continue to be held by the Government of Senegal. The total consideration of $282 million is subject to changes in intercompany loans associated with continued advancement of the projects between the date of the definitive agreement announcement and closing of respective asset sales. Inclusive of the total consideration is a $30 million deferred payment to be paid out at the earlier of: six months after closing of the Boto Gold Project and associated properties in Senegal, or at a time mutually agreed to by the parties.

“The acquisition in Senegal strengthens our footprint in West Africa and gives Managem meaningful near- term production growth. It also strengthens our position as a leading regional gold producer. We welcome the team based in Senegal to Managem Group and look forward to driving these projects forward alongside our stakeholders with shared success.” said Imad TOUMI, Chairman and CEO of Managem.