Topic: Growth Stocks

IAMGOLD $4.39 – Toronto symbol IMG

IAMGOLD $4.39 (Toronto symbol IMG; TSINetwork Rating: Speculative) (1-888-464-9999; www.iamgold.com; Shares outstanding: 376.7 million; Market cap: $1.6 billion; No dividends paid) has signed an agreement with Calibre Mining (symbol CXB on Toronto) that gives it the option to invest in a proposed gold-silver mine in Nicaragua.

Under the deal, IAMGold can earn a 51% stake in Calibre’s Easter Borosi project over the next three years if it pays $450,000 and spends $5.0 million to develop the property (all amounts except share price in U.S. dollars).

After that, IAMGold can earn an additional 19% interest if pays Calibre another $450,000 and contributes $5.0 million more to development costs.

This would be a small investment for IAMGold, which earned $12.2 million, or $0.03 a share, in the three months ended March 31, 2014.

IAMGold is a buy.

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