IAMGOLD Announces Investment in GoldON Resources; IMG Fell 5%, Closer To Year Lows Wednesday
IAMGOLD Corporation (IMG.TO, IAG), which dropped 5% and closer to a year low $6.22 on Wednesday, announced that it has acquired, as a result of a subscription to a private placement in the amount of $150,000, an additional 1.5 million common shares of GoldON Resources Ltd. (GLD.V) and 1.5 million warrants to acquire an equivalent number of common shares of GoldON, which is focused on exploration in northern Ontario and was formerly known as Newcastle Minerals Ltd. Each warrant entitles the purchase of one common share for $0.15 in the first year and $0.20 in the second year of issuance.
IAMGOLD's current indirect ownership of 3.5 million common shares of GoldON represents approximately 13.6% of the outstanding common shares. If the 1,500,000 common share purchase warrants were to be exercised, its indirect ownership would increase to 5,000,000 common shares of GoldON, or approximately 18.4% of the outstanding common shares.
The common shares and warrants to purchase common shares of GoldON acquired indirectly today by IAMGOLD were acquired for investment purposes.
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