Iamgold signs deals to triple Quebec district footprint

[Redator]

Canadian miner Iamgold (TSX: IMG; NYSE: IAG) announced a pair of acquisitions that would more than triple its footprint in northern Quebec’s Chibougamau region.

Iamgold agreed to buy Northern Superior Resources (TSXV: SUP) for C$2.05 in cash and stock per Northern Superior share in a transaction valued at about C$267.4 million, according to a statement issued Monday. The Toronto-based company also said it’s reached a C$17.2 million deal to acquire Mines D’Or Orbec (TSXV: BLUE) for C$0.125 a share.

Both transactions would consolidate land ownership around Iamgold’s Nelligan and Monster Lake projects, which together hold 3.21 million indicated oz. gold and 5.65 million inferred ounces. The two properties sit close to Northern Superior’s Philibert, Chevrier and Croteau deposits, which Iamgold said “supports the conceptual vision” of a central processing facility being fed by multiple mining areas within a 17-km radius.

“Consolidating the district, tripling the land position and adding more than 3 million oz. of resources should flag potential longer-term upside to investors,” RBC Capital Markets analyst Michael Siperco said Monday in a note to investors.

Canadian focus

News of the deals comes as Iamgold sharpens its focus on Canadian gold production. Together, Ontario’s Côté open-pit operation and Quebec’s Westwood underground mine account for 87% of the company’s mineral resources and 82% of net asset value.

Nelligan “represents a key potential organic growth option” for Iamgold, Siperco added. “Substantive exploration at the district has only resumed in 2025, with strong potential for resource growth and attractive project economics at spot prices, or higher.”

Combined, the Northern Superior and Iamgold assets near the town of Chibougamau would form one of Canada’s largest pre-production gold camps, with 3.75 million oz. gold of measured and indicated resources and 8.65 million oz. of inferred resources.

Adding Northern Superior would more than double Iamgold’s landholding in the district to 1,090 sq. km with the addition of 706 sq. km of claims. Philibert is located 9 km northeast of Nelligan and 12 km southeast of Monster Lake.

Nelligan is located 45 km southwest of Chibougamau, while Monster Lake is 15 km north of Nelligan.

Organic pipeline

“This acquisition aligns with our strategy to become a leading Canadian-focused mid-tier gold producer, bolstering our organic pipeline in Quebec where we have maintained a longstanding presence,” Iamgold CEO Renaud Adams said in the statement. “The combined assets begin to define a conceptual project that complements both the scale and timing of our Côté gold mine and its forthcoming expansion.”

Also close to Nelligan and Monster Lake is Orbec’s Muus project, which would contribute about 250 sq. km of mineral rights. Muus sits at the intersection of the northeast trending Fancamp deformation zone, which hosts Monster Lake, and the East-West trending Guercheville deformation zone, which hosts Nelligan.

“The Chibougamau region is quickly advancing to become one of the most exciting gold mining districts in Canada,” Adams added.

Offer premium

Iamgold’s offer calls for Orbec stockholders to receive C$0.0625 per share held and 0.003466 of an Iamgold common share. It represents a premium of about 25% to Orbec’s closing price Friday on the TSX Venture Exchange. Iamgold already owns 7.14 million Orbec shares, or 6.7% of the company’s shares outstanding.

Northern Superior shareholders, meanwhile, would receive 0.0991 of an Iamgold common share and C$0.19 in cash for each common share held. This would represent a premium of 27% based on the 20-day volume-weighted average prices of Iamgold on the Toronto Stock Exchange and Northern Superior on the TSX Venture Exchange as of Friday.

Shares of all three companies gained ground Monday morning. Iamgold rose 3.3% to C$19.37 in Toronto trading, boosting the company’s market value to about C$11.1 billion. Northern Superior soared 56% to C$2.21, while Orbec added 20% to C$0.12.