Iamgold acquires 17% interest in Oromin
2009-06-19 15:08 ET – News Release
Mr. Joseph Conway reports
IAMGOLD ANNOUNCES EQUITY POSITION IN OROMIN EXPLORATIONS LTD.
Iamgold Corp. has acquired 16,088,636 common shares at 70 cents per share for a total investment of $11.26-million, or 17 per cent of the now issued and outstanding common shares of Oromin Explorations Ltd. in partial subscription to a private placement. Oromin is a Toronto Stock Exchange-listed company with its principal property being an interest in a joint venture covering a large landholding in Senegal in close proximity to the Sabodala mine.
The common shares of Oromin acquired by Iamgold were acquired for investment purposes. Iamgold does not have any present intention to acquire ownership of, or control over, additional securities of Oromin. It is the intention of Iamgold to evaluate its investment in Oromin on a continuing basis and such holdings may be increased or decreased in the future.
The Oromin investment is consistent with the company’s exploration strategy in the region where it is looking to acquire interests in large prospective land packages.
Oromin Explorations closes $20-million financing
2009-06-19 14:52 ET – News Release
Mr. Chet Idziszek reports
OROMIN EXPLORATIONS LTD. ANNOUNCES CLOSING OF PRIVATE PLACEMENT OF COMMON SHARES FOR GROSS PROCEEDS OF C$20,000,000
Oromin Explorations Ltd. has completed its previously announced brokered private placement financing for gross proceeds of $20-million. The private placement consisted of the issuance of 28,571,429 common shares of the company at a price of 70 cents per share. The offering was completed by a selling group which was led by Toll Cross Securities Inc. and which included Arbuthnot Securities Limited, Dahlman Rose & Company LLC and Research Capital Corp. The agents received a cash commission of $1.26-million.
The shares issued pursuant to the private placement are subject to a four-month hold period that expires on Oct. 20, 2009.
The net proceeds will be used primarily for the company’s Sabodala gold project in Senegal as well as for general working capital and for its Santa Rosa Dome oil and gas project in Argentina.
EARLY WARNING REPORT
This report is made pursuant to National Instrument 62-103, Section 102.1 of the Securities Act
(Ontario) and similar provisions of other applicable securities legislation.
(a) The name and address of the offeror:
IAMGOLD Corporation
Suite 3200
401 Bay Street West
Toronto, Ontario M5H 2Y4
(b) The designation and number or principal amount of securities and the offeror’s security
holding percentage in the class of securities of which the offeror acquired ownership or
control in the transaction or occurrence giving rise to the obligation to file the news
release, and whether it was ownership or control that was acquired in those
circumstances.
On June 19, 2009, IAMGOLD Corporation (“IAMGOLD”) acquired 16,088,636
common shares (each a “Common Share” and, collectively, the “Common Shares”) of
Oromin Explorations Ltd. (“Oromin”) in partial subscription to a private placement on
even date. IAMGOLD now owns 16,088,636 Common Shares of Oromin, which
represents approximately 17% of the now issued and outstanding Common Shares of
Oromin (on a partially diluted basis).
(c) The designation and number or principal amount of securities and the offeror’s security
holding percentage in the class of securities immediately after the transaction or
occurrence giving rise to obligation to file news release.
See (b) above.
(d) Designation and number or principal amount of securities and the percentage of
outstanding securities of the class of securities referred to in above paragraph over
which:
(i) The offeror, either alone or together with joint actors, has ownership and control.
See (b) above.
(ii) The offeror, either alone or together with joint actors, has ownership but control
is held by other persons or companies other than the offeror or any joint actor.
Not applicable.
(iii) The offeror, either alone or together with joint actors, has exclusive or shared
control but does not have ownership.
Not applicable.
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(e) The name of the market in which the transaction or occurrence that gave rise to the news
release took place.
Not applicable.
(e.l) The value in Canadian dollars, of any consideration offered per security of the offeror
acquired ownership of a security in the transaction or occurrence giving rise to the
obligation to file a news release.
See (i) below.
(f) The purpose of the offeror and any joint actors in effecting the transaction or occurrence
that gave rise to the news release, including any future intention to acquire ownership of,
or control over, additional securities of the reporting issuer.
The Common Shares of Oromin acquired by IAMGOLD were acquired for investment
purposes. IAMGOLD does not have any present intention to acquire ownership of, or
control over, additional securities of Oromin. It is the intention of IAMGOLD to
evaluate its investment in Oromin on a continuing basis and such holdings may be
increased or decreased in the future.
(g) The general nature and the material terms of any agreement other than lending
arrangements, with respect to securities of the reporting issuer entered into by the
offeror, or any joint actor, and the issuer of the securities or any other entity in
connection with the transaction or occurrence giving rise to the news release, including
agreements with respect to the acquisition, holding, disposition or voting of any
securities.
Although IAMGOLD has no present intention to acquire ownership of, or control over,
additional securities of Oromin, it has agreed with Oromin that, only in certain
circumstances, it will not acquire ownership of, or control over, additional securities of
Oromin without the consent of its board of directors.
(h) Names of any joint actors in connection with the disclosure required herein.
Not applicable.
(i) In the case of a transaction or occurrence that did not take place on a stock exchange or
other market that represents a published market for the securities, including an issuance
from treasury, the nature and value of the consideration paid by the offeror:
The price paid by IAMGOLD for each Common Share was $0.70 and $11,262,045.20 for
all 16,088,636 Common Shares.
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(j) If applicable, a description of any change in any material fact set out in a previous report
by the entity under the early warning requirements of Part 4 in respect of the reporting
issuer’s securities.
Not applicable.
(k) If applicable, a description of the exemption from securities legislation being relied on by
the offeror and the facts supporting that reliance.
Not applicable.
DATED this 19th day of June, 2009.
IAMGOLD CORPORATION
Per:
“Tim Bradburn”
______________________________
Tim Bradburn – Assistant Secretary
