Iamgold Corp., a Canadian gold producer, said Tuesday it paid $10 million for a 13.2 percent stake in Tolima Gold Corp., increasing its exposure to some of Colombia's most prolific gold belts.
In recent weeks Iamgold bought a 10.4 percent interest in Bellhaven Copper and Gold and a 14 percent stake in Colombia Crest, both of which hold stakes in Colombian gold prospects.
The acquisition of 15.3 million units of Tolima at 65 cents per unit, lets Iamgold participate in Tolima's Ancal and Nortol projects.
Each Tolima unit is comprised of one common share and one-half of a common share purchase warrant, with each warrant entitling Iamgold to purchase one common share for 85 cents for up to two years from the date of issuance.
If Iamgold were to exercise the 7.69 warrants, it would own 23.08 common shares of Tolima, or approximately 18.5 percent of the outstanding common shares.
Shares of Iamgold, which operates mines in Suriname, Burkina Faso, Mali and Quebec, fell 12 cents to $18.90 in morning trading.