加國兩大金生產商將合併成為全球第十大金生產 Iamgold and Cambior to merge into...

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Iamgold and Cambior to merge into 10th-biggest global gold miner

TORONTO (CP) - Iamgold Corp. (TSX:IMG) and Cambior Inc. (TSX:CBJ) have agreed to merge into a Canadian-based international gold producer with 1.1 million ounces of annual production and a stock-market value well over $3 billion.

The two companies are "completely complementary," Iamgold CEO Joseph Conway told a conference call after Thursday morning's announcement.

Under the deal, approved unanimously by the Cambior board, Cambior shareholders would receive 0.42 of an Iamgold share for each Cambior share, creating what Conway said will be the world's 10th-largest publicly traded primary gold producer.

"It essentially doubles our reserves and resources," he said.

"We see this as a great opportunity or our shareholders and a great opportunity for our employees on a joint basis."

The offer represents a value of $4.83 per share based on the closing price of Iamgold on the Toronto stock market on Wednesday, a premium of 31 per cent to the closing price of Cambior shares.

Iamgold stock declined 11 per cent in early trading Thursday, down $1.26 to $10.23, while Cambior advanced 15 per cent, rising 56 cents to $4.23 on the Toronto stock market.

Current Iamgold shareholders would own 57 per cent of the expanded Iamgold, while Cambior shareholders would own 43 per cent.

"There are no conditions on this deal; due diligence is complete," Conway said.

Iamgold has the right to match any competing offer and would receive a $45-million break fee if another bid prevailed. The deal is expected to close by November, pending approval by 75 per cent or more of Cambior stockholders.

Toronto-headquartered Iamgold will issue 137 million shares in the transaction, raising its total outstanding to 313 million.

In addition to 1.1 million ounces of production - 600,000 from Iamgold and 500,000 from Cambior - the combined company would have reserves of 9.7 million ounces, measured and indicated resources of 21 million ounces and inferred resources of eight million ounces.

"That certainly puts us at the top of the mid-tier group in terms of this sector, and we believe it sets the stage for us to join the senior ranks as we move forward in this company," Conway said.

The company would also hold US$210 million in cash and bullion, with "more than sufficient capital to move forward" through acquisition or development without further share issues, Conway said.

"What's being created here is a great platform for growth," said Louis Gignac, CEO of Montreal-based Cambior, stressing the complementary nature of the companies.

"We've specialized over the years in the Americas; I think Iamgold's specialty was West Africa, or Africa in general," Gignac said during the conference call with supportive analysts.

"Iamgold's market focus has an excellent track record on exploration and acquisition, while our strengths were obviously more toward project development and operations."

Gignac indicated that Cambior had looked at two other possible deals, declining to provide specifics.

Iamgold has been attempting to grow since a failed merger attempt with Goldcorp (TSX:G) in 2004.

About 20 per cent of the combined company's production would be in Quebec, and going forward it would have about half of its production from the Americas and half in Africa.

"These are regions that both companies have been working in for a long time and we're very comfortable in these regions," Conway said, "and we will continue to look for opportunities on a combined basis."

(比較現時的生產, 未來的生產將會更穏定) Production in future years will be stable "based on what we have now," he added, with a long-term production cost of about US$330 an ounce.

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with a long-term production cost of about US$330 an ounce.

(長遠生產成本將會是330美金一安士)