Iamgold strengthens presence in Colombia

 

Toronto based Iamgold said on Tuesday it has acquired a 13.2% stake in privately-held exploration company Tolima Gold, the latest in a string of small Colombia-focused investments.

Toronto-based Iamgold has announced three separate investments in Colombian gold projects in the last month.

Colombia, largely unexplored due to years of civil strife, has become a hotbed for gold miners after regaining political stability over the last few years.

Iamgold said last month it had acquired a 14 percent stake in Colombia Crest and 10.4 percent stake in Bellhaven Copper and Gold, both of which own projects in Colombia.

As part of the C$10 million investment in Tolima, Iamgold has also acquired warrants that potentially allow it to raise its stake in the company to 18.5 percent.

“We’re excited about the potential of these (Colombian) projects and look forward to being in a position to make larger investments down the road,” said Chief Executive Steve Letwin.

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