IAMGOLD Corp. on Dec. 22 said it struck a definitive deal to acquire the Merrex Gold Inc. shares it does not already own.
IAMGOLD already owns about 45.8 million, or 23%, of Merrex's issued share capital and expects to issue 6.9 million shares in exchange for the remaining Merrex shares.
The deal is expected to close in the first quarter of 2017.
Merrex and IAMGOLD have a 50/50 joint venture on the Siribaya gold project in Mali.
Merrex also holds permits on about 700 square kilometers of land within an area of interest in the southern portion of the west Mali gold belt, the early-stage Karita gold property in Guinea and the Jubilee zinc-lead property in Nova Scotia.
IAMGOLD swung to a US$17 million net profit in the third quarter, driven by higher revenues and lower costs.