Iamgold Corporation (TSX: IMG, NYSE: IAG) has completed the sale of its indirect 35% interest in the Bambadji Joint Venture in Senegal to Fortuna Mining Corp., generating approximately $70 million in cash proceeds before Senegalese capital gains taxes and transaction costs, according to a company statement.

The Bambadji Joint Venture controls exploration permits in the Kédougou region of southeastern Senegal, approximately 850 kilometers southeast of Dakar near the border with Mali. The joint venture was originally established under an agreement dated May 23, 2016, between subsidiaries of Iamgold and Barrick Mining Corporation, which held a 65% interest.

Total consideration paid by Fortuna to both joint venture partners on a combined 100% basis consists of $200 million in cash at closing and a 0.5% net smelter return royalty capped on the first 1.75 million ounces of gold produced from the Bambadji permit. Iamgold retains its proportionate share of the royalty.

Fasken Martineau DuMoulin LLP acted as legal counsel to Iamgold in the transaction.

Iamgold operates mines in Canada and West Africa, including the Côté Gold mine in Canada, Westwood in Canada, and Essakane in Burkina Faso.