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IAMGOLD (IAG) Agrees to Buy Outstanding Shares of Merrex
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IAMGOLD Corporation (IAG - Free Report) recently signed a definitive agreement to acquire all of the issued and outstanding shares of Merrex Gold Inc., which it does not already own, in an all-share transaction. IAMGOLD currently owns about 45.8 million shares, accounting for roughly 23% of Merrex’s issued and outstanding shares.
IAMGOLD expects to complete the transaction by issuing about 6.9 million shares, which would account for less than 1.5% of the company’s total issued and outstanding shares. The deal is expected to conclude in the first quarter of 2017, subject to approvals and customary closing conditions.
Merrex is a junior mine exploration company headquartered in Canada. The company’s primary assets are the gold properties owned in West Mali. This consists of the company's 50% interest in the Siribaya Gold Project, its wholly owned Karita exploration authorization in Guinea and its 100% held zinc-lead property in Nova Scotia. Of the roughly 4,100 square kilometers area of interest in the southern part of the West Mali Gold Belt, the permits held by Merrex span around 700 square kilometers.
Shares of IAMGOLD fell 2.4% to close at $3.25 on Dec 22.
IAMGOLD outperformed the Zacks categorized ‘Mining-Gold’ industry over the last three months. Its shares dipped 0.7% in the last three months compared with a 21.7% decline recorded by the industry over the same period. Earnings estimates for the company have also narrowed over the same timeframe from an expected loss of 3 cents a share to a loss of a penny a share.
In Aug 2016, IAMGOLD announced that it had signed an agreement with the government of Suriname to buy an interest in the Saramacca property. The company also said that it plans to define a 43-101 compliant mineral resource within the next 24 months.
The terms of the transaction include an initial payment of $200,000, which would allow immediate access to the property to conduct a due diligence review. Once Rosebel is satisfied with the results of the due diligence, it will pay $10 million as well as 3.125 million IAMGOLD common shares to be held in escrow, which would be released to the government of Suriname in about three equal tranches in 12-month intervals.
BHP Billiton has an expected long-term growth of 5.64%.
Sandstorm Gold delivered an average positive earnings surprise of 150% in the trailing four quarters.
Teck Resources has an expected long-term growth of 10.65%.
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IAMGOLD (IAG) Agrees to Buy Outstanding Shares of Merrex
IAMGOLD Corporation (IAG - Free Report) recently signed a definitive agreement to acquire all of the issued and outstanding shares of Merrex Gold Inc., which it does not already own, in an all-share transaction. IAMGOLD currently owns about 45.8 million shares, accounting for roughly 23% of Merrex’s issued and outstanding shares.
IAMGOLD expects to complete the transaction by issuing about 6.9 million shares, which would account for less than 1.5% of the company’s total issued and outstanding shares. The deal is expected to conclude in the first quarter of 2017, subject to approvals and customary closing conditions.
Merrex is a junior mine exploration company headquartered in Canada. The company’s primary assets are the gold properties owned in West Mali. This consists of the company's 50% interest in the Siribaya Gold Project, its wholly owned Karita exploration authorization in Guinea and its 100% held zinc-lead property in Nova Scotia. Of the roughly 4,100 square kilometers area of interest in the southern part of the West Mali Gold Belt, the permits held by Merrex span around 700 square kilometers.
Shares of IAMGOLD fell 2.4% to close at $3.25 on Dec 22.
IAMGOLD outperformed the Zacks categorized ‘Mining-Gold’ industry over the last three months. Its shares dipped 0.7% in the last three months compared with a 21.7% decline recorded by the industry over the same period. Earnings estimates for the company have also narrowed over the same timeframe from an expected loss of 3 cents a share to a loss of a penny a share.
In Aug 2016, IAMGOLD announced that it had signed an agreement with the government of Suriname to buy an interest in the Saramacca property. The company also said that it plans to define a 43-101 compliant mineral resource within the next 24 months.
The terms of the transaction include an initial payment of $200,000, which would allow immediate access to the property to conduct a due diligence review. Once Rosebel is satisfied with the results of the due diligence, it will pay $10 million as well as 3.125 million IAMGOLD common shares to be held in escrow, which would be released to the government of Suriname in about three equal tranches in 12-month intervals.
IAMGOLD CORP Price
IAMGOLD CORP Price | IAMGOLD CORP Quote
Other Stocks to Consider
IAMGOLD carries a Zacks Rank #3 (Hold).
Some better-ranked companies in the mining space include The BHP Billiton Limited (BHP - Free Report) , Sandstorm Gold Ltd. (SAND - Free Report) and Teck Resources Limited (TECK - Free Report) . Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can the complete list of today’s Zacks #1 Rank stocks here.
BHP Billiton has an expected long-term growth of 5.64%.
Sandstorm Gold delivered an average positive earnings surprise of 150% in the trailing four quarters.
Teck Resources has an expected long-term growth of 10.65%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>