Iamgold Corp. (IAG) said Wednesday it received lines of credit valued at a total of $825.6 million to fuel the expansion of its Niobec mine, which is in the Saguenay Region of southeastern Québec.
The Toronto mining company has been looking to expand the mine, which in 2010 produced 4,850 tons of niobium, an alloying agent used in the production of high-grade steel.
The money comes in the form of a $500 million revolving credit facility, arranged by Scotiabank, CIBC and TD Securities; a $75 million credit facility; and $250 million geared towards Niobec Inc.
Our strong balance sheet and robust cash flow gives us the opportunity to further enhance our corporate liquidity, said Carol Banducci, chief financial officer, of Iamgold in a statement.
By increasing our credit facility we have greater flexibility to capitalize on strategic opportunities as they arise. In addition, the Niobec facility is an important step towards self-funding the expansion of the niobium mine.
Shares rose 55 cents, or 3.3 percent, to $17.39 in late afternoon trading.