IAMGOLD Receives $49 Million From La Arena Option

IAMGOLD Corporation IAG today announced that Rio Alto Mining Limited has exercised its option to acquire 100% of IAMGOLD's Peruvian copper/gold project for US$49 million cash. In 2008, the Company initiated a strategy to rationalize its non-core exploration assets and in June 2009 finalized an option and earn-in arrangement with Rio Alto on the La Arena copper/gold property. Under the agreement, Rio Alto had an option to acquire 100% of IAMGOLD's interest in the property for the payment of US$47.6 million cash, subject to certain adjustments and the completion of expenditure commitments. As part of the agreement, in June 2009, IAMGOLD received 8 million shares of Rio Alto and based on yesterday's closing price, the equity stake is valued at close to $20 million.