04:49 PM EDT, 05/21/2024 (MT Newswires) -- IAMGOLD ( IAG ) was last seen down 8.2% in after hours New York trading after the company after close on Tuesday said it is raising US$300 million in a bought-deal share offering.

The miner said it is selling an underwriting syndicate 72-million shares priced at US$4.17 each, with an additional 10.8-million shares available as an over-allotment option.

IAMGOLD ( IAG ) said it will use proceed to the repurchase a 9.7% interest in the Cote Gold Mine in Ontario from Sumitomo Metal Mining, in order to return to its full 70% interest after selling the stake to its joint-venture partner in December, 2022. The proceeds will be also deposited in an interest-bearing account or used to repay drawn amounts under its credit facility.

"Based on the current ramp-up schedule of the Cote Gold Mine as well as prevailing market conditions which could impact the amount of required expenditures during the ramp-up of Cote Gold and operating cash flows from the company's existing operations, the company believes that the net proceeds of the offering, combined with cash and cash equivalents at March 31, 2024, expected cash flows from operations, the expected proceeds from the sale of the remaining Bambouk assets and the available liquidity provided by the undrawn amounts under the credit facility, will be sufficient to fund the repurchase of the Transferred Interest," the company said.

IAMGOLD ( IAG ) shares were last seen down US$0.37 to US$4.12 after hours. They closed down C$0.04 to C$6.13 on the Toronto Stock Exchange.