VANCOUVER — Alamos Gold (TSX: AGI; NYSE: AGI) and AuRico Gold (TSX: AUG; NYSE: AUQ) have apparently been in an on-again, off-again courtship for a couple of years, but on April 13 the companies tied the knot amidst a rising tide of merger and acquisition activity in the gold space. The friendly deal would create a diversified North American gold miner with three producing assets, ample cash and a US$1.5-billion market capitalization.
Alamos president and CEO John McCluskey recounted during a conference call how he had initially spoken with AuRico president and CEO Scott Perry about a potential business combination around two years ago. The negotiations didn’t really pick up steam until mid-January.
The timing and market conditions for the deal do appear ideal, as the two companies’ market valuations were nearly identical at the time of the merger and each brings a specific strength to the table.
Read the complete article at NorthernMiner.com/news/alamos-aurico