Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Mid-tier gold producer IAMGOLD (TSE:IMG) has purchased a 14% stake in Colombia Crest Gold Corp. (CVE:CLB) for $3.4 million.
Stock in Colombia Crest Gold shot up 9.43% on the news.
The private placement follows IAMGOLD’s earlier investments in Tolima Gold Corp., a junior miner, and Bellhaven Copper & Gold (CVE:BHV).
The latter, a Canadian exploration company operating in Panama and Colombia, received a 10.2% equity interest investment by IAMGOLD Corporation which will subscribe for 11 million units of Bellhaven at C$0.55 per unit.
In mid-October IAMGOLD said it was going to start investing in new companies that would complement its core strengths, established relationships with foreign governments and working experience in Africa and the Americas.
“IAMGOLD has extensive experience in South America. The mineralization of Colombia’s Middle Cauca gold belt is well known to our technical team and we have established strong relationships with the government,” IAMGOLD CEO Steve Letwin said today in announcing the private placement.
“The combination of Colombia’s untapped mining potential together with the increasing stability of the country is a key reason why we have our periscope up in this region. Colombia Crest has several early stage projects with attributes characteristic of the type of exploration opportunities we are looking for.”
