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IAMGOLD increases stake in Nelligan gold project in Quebec to 75%

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IAMGOLD increases stake in Nelligan gold project in Quebec to 75%

IAMGOLD Corp. increased its stake in the Nelligan gold project in Quebec to 75% from 51% by paying Vanstar Mining Resources Inc. C$2.4 million in advance.

The payment is in line with IAMGOLD's option to acquire up to 80% of the project, signed with Vanstar in February 2018.

IAMGOLD can earn an additional 5% stake by delivering a feasibility study.

Vanstar currently retains a 25% interest and a 1% net smelter return in the project.

In October, IAMGOLD reported an estimated initial inferred resource of 97.0 million tonnes averaging 1.02 g/t gold for 3.2 million ounces of contained gold for Nelligan.