The equity portfolio of IAMGOLD (NYSE:IAG) has fattened a bit. The company announced that it has acquired nearly 6.67 million common shares of fellow Canadian precious metals concern Merrex. The shares were provided by the latter company "in partial satisfaction or repayment" of a debt owed by it to an IAMGOLD subsidiary.
Following the deal, IAMGOLD now holds just over 24.28 million shares in its counterpart, giving it around 20% of the outstanding amount. IAMGOLD says it's adding to its stake for investment purposes, although it stressed that it "does not have any present intention to acquire ownership of, or control over, additional securities of Merrex."
Merrex is traded on the Toronto Stock Exchange under the ticker symbol MXI. It has nearly 118.90 million shares outstanding, and its stock most recently closed at C$0.06 ($0.06) per share.