Iamgold Corp. said Wednesday it has reached an agreement in principle with the government of Suriname to expand its Rosebel gold mine.
The Canada-based company said it expects a definitive agreement on expanding the South American mine by next year.
The open pit mine, which holds inferred resources of 609,000 ounces, is expected to produce between 360,000 and 380,000 ounces of gold this year. Last year it produced 395,000 ounces of gold at a cash cost of $484 per troy ounce.
Shares were down seven cents to $16.15 in midday trading.