Iamgold Corp., a Toronto-based gold mining company, will pay $3.42 million for a nearly 20 percent stake in Colombia Crest Gold Corp.

Hans Rasmussen, CEO of Colombia Crest Gold, said the investment by Iamgold underscores the potential for a near-term exploration success once we drill the recently discovered Arabia porphyry target.

Colombia Crest Gold holds attractive prospects in the Fredonia and Venecia projects of Colombia's Cauca River Valley.

Shares of Iamgold rose 19 cents to $20.32 in morning trading.