MINING NEWS: Iamgold investors scuttle C$2.3 billion merger with Wheaton River Minerals

Gary Park

Petroleum News Calgary correspondent

A proposal to create Canada’s fourth largest gold miner has unraveled, with shareholders of Iamgold rejecting a controversial C$2.3 billion merger with Wheaton River Minerals.

Iamgold shareholders voted 58 percent against the plan July 6, reviving what had already been a tangled ownership battle involving two U.S.-based companies.

Denver-based Golden Star had previously launched a C$1.1 billion hostile bid for Iamgold and Idaho-based Coeur d’Alene Mining, the largest U.S. silver producer, had offered C$3 billion in cash and stock for Wheaton.

Both offers have been rejected, but Golden Star Chief Executive Officer Peter Bradford and Coeur d’Alene Chief Executive Officer Dennis Wheeler both said they are looking to open friendly talks.

Golden Star has set a deadline of July 16 to complete a deal.

Iamgold President and Chief Executive Officer Joseph Conway, expressing disappointment at the shareholder vote, said “we will now be looking at all our opportunities.”

The planned merger would have created Axiom Gold, with forecast production of 980,000 ounces of gold this year, trailing only Barrick Gold, Placer Dome and Kinross Gold in Canada.