IAMGOLD  and Cambior have agreed to a $3 billion transaction to create a new million ounce plus gold producer. The new company will continue under the name IAMGOLD. Under the terms of the transaction, which is structured as a Plan of Arrangement, Cambior’s common shareholders will receive 0.42 common shares of IAMGOLD for each issued share of Cambior, representing a value of C$4.83 per share based upon the closing price of IAMGOLD on the TSX on September 13, 2006. This represents a premium of 31% to the closing price of Cambior’s shares on the TSX on September 13, 2006 and 33% based on the 20 day volume weighted average trading prices of IAMGOLD’s and Cambior’s shares on the TSX.

The new IAMGOLD will be the tenth largest publicly-traded primary gold producer in the world with the following attributes that include 1.1 Moz/y of gold production annually and reserves totaling 9.7 Moz and total measured and indicated resources of close to 21 Moz and inferred resources of 8 Moz. The companies report a solid balance sheet with a cash and bullion balance in excess of $210 million and limited debt; and market capitalization of $3 billion.

IAMGOLD says it “is uniquely positioned for growth, both organically and through future acquisitions. The company is unique amongst intermediate gold producers in holding a substantial platform in both South America and West Africa, which are two of the highest growth regions in gold mining. In summary, the combined Company has the financial strength and human resources to take advantage of enhanced exposure to opportunity in growth jurisdictions.”