IAMGOLD To Sell Its Interest in Tarkwa and Damang Mines in Ghana for $667 Million in Cash (IAG)

IAMGOLD Corporation IAG announced today that it has reached an agreement to sell its 18.9% interest in the Tarkwa and Damang gold mines in Ghana, West Africa to Gold Fields Limited for $667 million. The Transaction is subject to the approval of Gold Fields' shareholders and is expected to close no later than July 31, 2011. "This sale is the first of several strategic initiatives to create value for our shareholders," said Steve Letwin, President and CEO of IAMGOLD. "We cannot fully leverage our skills and experience in developing and operating mines if we are not the operator and have a minority interest in the mine. Our strategy is to invest in mines that we own and operate, as they represent the best return on investment for our shareholders. Upon completion of this transaction, we will have more than one billion dollars in cash, cash equivalents and gold bullion (at market). In addition, we have a $350 million undrawn credit facility. Our strong liquidity position gives us considerable financial flexibility to continue growing our business."