IMG sells its diamond royalty

Article Excerpt

IAMGOLD CORP. $2.67 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888- 464-9999; www.iamgold.com; Shares outstanding: 391.3 million; Market cap: $1.0 billion; No dividends paid) will sell its 1% revenue royalty on the Diavik diamond mine in the Northwest Territories to Sandstorm Gold Ltd. (symbol SSL on Toronto). Diavik is Canada’s largest diamond mine and has been in operation since 2003. Sandstorm will pay $52.5 million U.S. in cash plus three million warrants. IAMGold can exercise the warrants for up to five years after production from a new zone at Diavik starts up. The exercise price is $4.50; Sandstorm currently trades at $4.38. This deal, as well as the January 2015 sale of its Niobec niobium mine in Quebec, leaves IAMGold focused on its gold mines. IAMGold is still a buy. buy. …