Gold stocks have been in focus for quite some time now and much of that is due to the gains made by the precious metal this year so far. One of the gold companies that investors could consider having a closer look at is Iamgold (NYSE:IAG). Earlier this week the company also made a significant announcement that might lead to further optimism about the stock.
Senala Project Resumption
The announcement was made on Monday this week. It was announced that Iamgold along with its joint venture partner Oriole Resources are all set to resume the air core drilling at the Senala project. It is a significant development for Iamgold considering the fact that it is a 10000 m drilling operation.
The project had been halted due to rains but up until then, Iamgold had managed to drill 1300 m. The program is all set to recommence later on in November. The results from the program are going to be reported by the company at some point in the first quarter of 2021.
The three-year agreement with Orioles is on the verge of completion and by that time, Iamgold had committed to spending $8 million on the project. The spending is going to earn interest of as much as 70% and at this point, the company still has to spend $1 million ore to hit the milestone.
On Wednesday, it was announced that Iamgold closed another key transaction with TomaGold. TomaGold has a 25% stake in the Monster Lake project with Iamgold, but on Wednesday the company bought that stake. The transaction was completed in both cash and stock.
Iamgold paid $500000 to TomaGold and also issued as many as 1464377 shares of its common stock to close the transaction. The transaction had also needed approval from the minority shareholders in TomaGold.
Westwood Property Update
Earlier in November, the company had also provided the projections for its property at Westwood. Iamgold cut down its projections yet again for the property after work had to be halted owing to an earthquake.
According to the latest projections, the output from the Westwood property is going to be in the range of 630000 ounces to 680000 ounces.
In March, the projections had been set in the 700000 ounces to 760000 ounces range. The projection was cut in May and then again in August. The previous projections had pegged the output in the 645000 ounces to 700000 ounces range.
Neither PSN nor its owners, members, officers, directors, partners, consultants, nor anyone involved in the publication of this website, is a registered investment adviser or broker-dealer or associated person with a registered investment adviser or broker-dealer and none of the foregoing make any recommendation that the purchase or sale of securities of any company profiled in the PSN website is suitable or advisable for any person or that an investment or transaction in such securities will be profitable. The information contained in the PSN website is not intended to be, and shall not constitute, an offer to sell nor the solicitation of any offer to buy any security. The information presented in the PSN website is provided for informational purposes only and is not to be treated as advice or a recommendation to make any specific investment. Please consult with an independent investment adviser and qualified investment professional before making an investment decision.